The Liquidation Process involves appointing a Liquidator. The Liquidator takes control of the company and its affairs, does their best to pay out company creditors, and lastly once all is done, winds the company up.
The most common type is the Creditors Voluntary Liquidation. This type begins in the following ways:
In the event of a company trading insolvent, creditors can vote for Liquidation. This follows through a voluntary administration. This can lead to a terminated deed of the companies procedure, or shareholders appoint a liquidator to liquidate a company.
It is a standard procedure that the liquidator holds a final creditors meeting. Within the creditors meeting, the give a detailed run down and advice on how it proceeded, how the assets were realised and dealt with. Please note that this situation only happens in a voluntary liquidation.
The court appointed procedure appoints a liquidator to wind up a company, through an application. This can only happen if a creditor submits the application form. Furthermore, a majority of shareholders, or a director may produce the winding up application.
It is important to note that unsecured creditors can no longer commence legal action against the company unless the court permits it, once the company has gone into liquidation.
Unlike a Creditors Voluntary Liquidation, the liquidator is not required to hold a final creditors meeting.
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