Liquidation
When closure is the responsible course.
Liquidation may be the appropriate outcome where a company cannot pay its debts or no longer has a viable business. Timing, the chosen procedure and conduct before liquidation can materially affect everyone involved.
Voluntary and compulsory routes
A company may enter liquidation through a shareholder resolution or a court application. The financial position, urgency, opposition and interests of creditors determine the appropriate route.
Directors and shareholders
Decisions made while a company is under pressure are often examined later. Advice should be obtained before unusual payments, asset disposals or continued trading create additional risk.
Creditors and security
A creditor’s ranking, security and available enforcement steps must be assessed before and after liquidation. Prompt action can be important in preserving rights and proving claims.
This page provides general information and is not legal advice on a particular matter. The facts, documents and timing may change the appropriate course.