At Company Bureau, we understand the difficulties that Directors and Shareholders encounter when faced with a liquidation situation. Company Bureau offers assistance to liquidate an Irish Company in the following categories:

    • Creditors Voluntary Liquidation
    • Members Voluntary Liquidation
    • Compulsory (Court) Liquidation

Creditors Voluntary Liquidation

A creditors voluntary liquidation (CVL) is where an insolvent company voluntarily decides to go into liquidation. Company Bureau can assist you by advising on your statutory responsibilities and assisting in the procedures necessary for the company to be placed in liquidation.

A creditors voluntary liquidation is usually initiated by the company’s directors. The board of directors must hold a board meeting to agree that the company should be placed into administration, and that notices should be sent to shareholders and creditors.

The 1963 Companies Act states that ten days notice of the meeting must be given to all creditors. The creditors meeting must also be advertised at least ten days before the meeting in at least two daily newspapers which circulate in the district where the registered office or the main place of business of the company is situated.

The presiding director usually reads a short statement which outlines the reasons why the company is being placed into liquidation. The director is also required to present a Statement of Affairs which describes the book value of the company’s assets together with their realisable value, which may be quizzed by the creditors.

Members Voluntary Liquidation

A members voluntary liquidation occurs when a directors decide to retire, or when a company has run its course, to realise its assets and distribute its surplus to the shareholders in a tax efficient way. It is also a useful way to dispose of dormant companies that no longer have any useful purpose.

Members voluntary liquidation is initiated by the shareholders and there is no creditor involvement. A Declaration of Solvency must be signed by the directors stating that the company can pay any remaining debts in full within 12 months. The company is dissolved following completion of the liquidation.

Compulsory Liquidation

This is generally as a result of a winding up order on the instruction of a court on foot of a petition from a creditor, the Director of Corporate enforcement, A shareholder, or the company itself. An Official Liquidator is appointed by the Court with powers to liquidate a company, investigate its activities and pursue directors.

For more details and a free and discreet consultation with our Liquidator, please give us a call on +353(0) 16461625 or complete our Contact Form and a member of our team will be in touch within 24 hours.

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FAQ's

A company may be considered insolvent if it cannot pay its debts when they are due or if its liabilities exceed its assets. Warning signs can include persistent cash flow problems, unpaid taxes, growing creditor pressure, legal demands, or an inability to meet payroll obligations. If you believe your company may be insolvent, you should seek professional advice as early as possible, as continuing to trade while insolvent can increase risks for both the company and its directors.
Yes. A dormant company can often be closed through a Members’ Voluntary Liquidation if it remains solvent and has fulfilled its legal obligations. However, depending on the company’s circumstances, a voluntary strike-off may also be a suitable alternative. The most appropriate option will depend on factors such as outstanding assets, liabilities, tax considerations, and the company’s compliance history.
During liquidation, the appointed liquidator takes control of the company’s assets and affairs. The liquidator identifies, values, and realises assets, then distributes the proceeds according to the priorities set out under Irish law. In a solvent liquidation, any surplus remaining after all debts and expenses have been paid may be distributed to shareholders. In an insolvent liquidation, available funds are generally used to satisfy creditor claims as far as possible.
In most cases, directors of limited companies benefit from limited liability protection. However, personal liability can arise in certain circumstances, particularly where there has been reckless trading, fraudulent trading, or breaches of directors’ duties. If a company is experiencing financial difficulties, directors should seek advice immediately to ensure they comply with their legal obligations and take the appropriate steps to protect both themselves and the company’s stakeholders.
Generally, the purpose of liquidation is to wind up the company’s affairs rather than continue trading. Once a liquidator is appointed, control of the company effectively passes from the directors to the liquidator. In some circumstances, limited trading activities may continue temporarily if required to maximise asset value or complete outstanding matters.