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Liquidations in the Age of Social Distancing - yes, it's still easy to appoint

Jul 1, 2020 | Written by Brad Vincent

I thought I’d give you a quick update on how we’ve adjusted our processes at Dissolve to maintain social distancing and the safety of our clients and referrers.

The good thing for us was we didn’t have to change much. Liquidation laws have evolved over recent years, allowing the process to be conducted completely remotely.

Getting Advice

No need to come in for a chat, we can assess your situation over the phone. We’re happy to do conference calls, and can usually get to the root of the issue in under 30 minutes, but we’re happy to spend longer if need be. For those who like face to face, we regularly do Zoom video conferencing consultations.

Kicking Things Off

Back in the day, commencing a liquidation meant attending the liquidators office and signing the paperwork in person. These days, once you give us the go ahead, we can have appointment documents in your email inbox within two business hours. We only need for them to be signed by the directors and shareholders of the company and emailed back with a proof of payment of the included invoice for the liquidation to be underway. The liquidation is often effective the same day of request.

Providing Records

With paper records becoming less prevalent, it’s often the case that we receive a full set of company records in one or two emails. Providing access to a cloud accounting platform, financials that were already on file and some bank statements largely complies with the directors responsibilities. Any other physical records can be delivered within 2 weeks.

Creditor’s Meetings

Once upon a time we’d have to gather enough company creditors in a room to form a quorum and ratify the liquidation. Recently insolvency laws were reformed doing away with creditors meetings altogether in most cases. What was once decided in a creditors meeting can also be passed by proxy now and if really necessary, virtual meetings can be held by phone or video conference.

What If There’s a Problem?

A great rule of thumb in Insolvency is: If there’s a problem, raise it in writing. It’s always best to have a paper trail. Most issues in a liquidation require some thought and consultation so you rarely get an answer on the spot by calling or turning up at a liquidators office.

So don’t delay a liquidation because you can’t leave the house, it can all be done from home.

Brad Vincent

Brad Vincent

Brad is the Senior Advisor at Dissolve. After 10 years of being an advisor, Brad has developed an excellent understanding of the legal and practical issues facing a director of an insolvent company – it is rare for a director to throw a new situation at Brad. You will find him understanding and sympathetic, but above all practical. Brad will provide the cool head in a stressful situation.