Fast, Low Cost Company Liquidation Services

If your company is found to be insolvent, you’re no longer legally allowed to conduct business and the company must be wound up.

If your company is found to be insolvent, you must appoint a Liquidator to wind it up. The liquidator will take control of your company and begin to sell the assets, giving money from the sale to your creditors. Speak to us at Revive Financial about appointing a Liquidator. We will be able to advise you on your company’s situation and the potential costs involved.

Once the Liquidator has finished their Liquidation process, they’re required to lodge the Notion of Final Meeting Convened by Liquidator to complete the process. When it gets to this point, your company has officially been wound up.

The time it takes to complete a Company Liquidation will vary depending on how complicated the company’s affairs are. There is no set time limit with which the Company Liquidation needs to be completed and as such, it can range from 12 to 18 months (for an average-sized company that is fairly uncomplicated) to longer (if the company’s affairs are complex). The main factors that affect the time-frame of the Liquidation are the structure of the company, its dealings prior to being liquidated and whether it will be necessary to litigate.

You have the same duties and obligations during the Company Liquidation period as you had prior to the Liquidator’s appointment. In addition, you must:

• Provide the Liquidator with a report as to the affairs of the company,
• Provide all of the company’s books and records to the Liquidator, and
• Reasonably assist the Liquidator in carrying out his or her role.

Refusing to cooperate with the Liquidator carries a number of offence provisions.

The priority for payment of proceeds in a Company Liquidation is generally as follows:

• Costs and expenses of the Liquidation, including the Liquidator’s fees,
• Secured creditors,
• Employee claims, and
• Unsecured creditors.

Before any proceeds are paid to a creditor for their debt or claim, they will need to give the Liquidator sufficient information to prove their debt. Payments to creditors in a Liquidation are known as dividends. Each category of creditor is paid in full before the next category is paid. If there are insufficient funds to pay a category in full, the available funds are paid on a pro rata basis and the next category or categories will not be paid. Unfortunately, there is no guarantee creditors will be paid at all. This is the case when there is no money left in your company to satisfy creditor claims.

Credit reporting bureaus do keep track of companies that enter Company Liquidation and the names of the directors of those companies. The ‘mark’ on your credit report is there, but it is unlikely to affect you if you’re applying for personal credit. For example, if you want to apply for a credit card or personal loan, it generally won’t be an issue. However, if you want to apply for a business loan, it is much more likely the ‘mark’ will be found.