Liquidation

A Creditors Voluntary Liquidation (CVL) is the windingup of a company that is unable to meet it’s debts as they fall due and is therefore deemed insolvent. The Liquidator’s role is to wind up the company’s affairs, realise the assets and distribute the net proceeds to the creditors

When a company becomes insolvent, the CVL option is the most common type of restructuring procedure. The process of placing a company into CVL is as follows:

1. The directors call a meeting of the shareholders followed by a meeting of the creditors.

2. A Statement of Affairs is presented at the creditors meeting. The creditors have the opportunity to review the Statement of Affairs and put questions to the Directors in respect of the financial position of the company.

3. The creditors then ratify the appointment of a liquidator

Service Offering:

Insolvency and restructuring processes are challenging, stressful times for stakeholders. We recognise this. We bring together a combination of business management, tax, accounting and company law skills to conduct efficient, orderly wind downs and distribution of assets in creditor voluntary liquidations.

Our team appreciate that no two insolvency circumstances are the same and our specialist team at Baker Tilly can offer bespoke strategies to shareholders, directors and stakeholders alike.

A Members Voluntary Liquidation (MVL) is a process that enables shareholders’ to appoint a Liquidator in order to formally wind down a solvent company. The Liquidator realises the company’s assets and ensures that there are no outstanding company liabilities. Once they have finalised this process, a capital distribution is paid to shareholders either in specie or from funds held in the company.

1. Allows a liquidator to take over duties and responsibilities from the directors

2. Can be a very tax efficient method of distributing assets to shareholders

3. It is not necessary to bring all statutory filings up to date

4. Savings on ongoing audit, tax compliance, statutory filings and accounting costs

5. Averts the danger of involuntary strike off due to non-filing of statutory returns; and

6. The period for reinstatement of a company/ICAV to the relevant register is limited to two years post dissolution

Service Offering:

We provide an efficient and comprehensive service advising on statutory winding up procedures and implementing the necessary steps to asset realisation and corporate dissolution.

We have a dedicated team of multi-disciplinary professionals with deep experience in asset realisation and dissolution of:

• Private companies

• Regulated fund and management companies

• ICAV corporate fund structures

• Special Purpose Vehicles (SPVs) and Section 110 companies

• Offshore tax resident companies

• Corporate non-filing structures; and

• Multi-jurisdictional group companies

Compulsory liquidation, also known as court liquidation, is a formal insolvency process where a company is forced to liquidate by a court order. This happens when a creditor, typically due to non-payment of debts, petitions the court to wind up the company, leading to the appointment of a liquidator to manage the company's assets and distribute them to creditors.

Compulsory liquidation is distinct from voluntary liquidation (CVL or MVL), where the company's directors initiate the liquidation process without court intervention. 

By acting early, you are able to reduce your risk of compulsory liquidation.  We can assist in cases of voluntary liquidation to ensure the best deal for the company and its shareholders.