Liquidations – How to Liquidate an Irish company
At Company Bureau, we understand the difficulties that Directors and Shareholders encounter when faced with a liquidation situation. Company Bureau offers assistance in the liquidation process 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 assist 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.
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 don’t hesitate to contact us.