If none of the other options are appropriate, voluntary liquidation can still be a useful tool for giving a business a second chance.
For some companies, the turnaround of its fortunes is just not possible and the formal insolvency options aimed at rescue, CVA and Administration, are not appropriate, the decision may have to be taken to put the company into Voluntary Liquidation but to move the business on into anther company with a second chance to make a success of it. Alternatively, if the business is not viable and has no future, the company should be put into Voluntary Liquidation to bring its life to an end.
If Voluntary Liquidation is being used to make a fresh start, there are a number of legal issues and requirements that must be dealt with properly in order to ensure that the new company and its directors are fully compliant and we are able to lead you through the process and help you achieve the best outcome.
The liquidator will deal with the affairs of the old company and will distribute the available funds to those creditors that are entitled to them and this can have a critical impact on the directors if they have given personal guarantees.
If a company’s directors do not take timely action to address an insolvency issue then HM Revenue & Customs, or any other unsecured creditor, can petition the Court to have the company put into Compulsory Liquidation. If that happens, the directors’ options are immediately reduced and specialist advice is needed.