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Procedure for liquidating a company

In United Kingdom and United States law and business, liquidation is the process by which a company (or part of a company) is brought to an end, and the assets and property of the company are redistributed.

The shareholders then ask a licensed insolvency practitioner to call a creditors meeting as soon as possible (this can be done online, by phone or in person.

This must be not less than 14 days notice, but it is usually 21 or so days.

The company will stop doing business and employing people.

The company won’t exist once it’s been removed (‘struck off’) from the companies register at Companies House.

A court appointed liquidation is common when a creditor believes that the company is insolvent and that by continuing to trade the ability of the creditors to recover their debts will be adversely affected.

The above information for liquidation process and procedures is intended as a guideline only.

Once the resolution is made there are 3 steps you must follow.

You can choose to liquidate your limited company (also called ‘winding up’ a company).

The assets are collected and sold for the benefit of the company’s creditors.

From the date of liquidation the liquidator takes custody and control of all the company’s unsecured assets and assists secured creditors where necessary.

The process of liquidation also arises when customs, an authority or agency in a country responsible for collecting and safeguarding customs duties, determines the final computation or ascertainment of the duties or drawback accruing on an entry.


 
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14-Jan-2020 10:33