Timeline of a Creditors Voluntary Liquidation
It is a quick and easy process to appoint a Liquidator. We can get you an Appointment Package in an hour or two and then it is just a matter of you signing the documents we’ve sent you. After that the liquidator will wind up the company. We’ve explained all of the steps for a Creditors Voluntary Liquidation below. But for most companies it is even easier than it looks – that’s because the Director(s) and Shareholders are usually the same person or people and so once you get the Appointment Package from Dissolve (Step 1) then Steps Two, Three and Four are done by simply signing the documents we’ve sent you all at the same time.
Step One – Obtain a Consent to Act and draft documents from a Liquidator
We always recommend you discuss the possible liquidation with a trusted expert to make sure it is the right answer. To appoint a Liquidator you need to obtain a Consent to Act from the proposed Liquidator. At Dissolve we will be happy to consent but only after we discuss with you the company’s situation to make sure it’s the right decision – we can determine that in one phone call. We will also prepare all the documents needed in the Steps below and lead you through the process.
Step Two – Meeting of Directors
The directors meet and resolve that the company is insolvent, sign a simple Summary of Affairs and call a meeting of shareholders.
Step Three – Shareholders sign a Consent to Short Notice
If 95% of shareholders sign a Consent to Short Notice then the meeting of shareholders can be called and held immediately. If the 95% of shareholders cannot sign, then 21 days notice is given for the shareholders meeting.
Step Four – General Meeting of Shareholders
This meeting passes the resolutions appointing a Liquidator. Usually we provide “Circular Resolutions“ whereby shareholders can sign the resolution one after the other so they do not have to actually meet.
Step Five – Liquidation of the Company
The Liquidator is now appointed and proceeds to call a meeting of creditors, advertise the Liquidation, dispose of the assets of the company and attend to a variety of administrative matters