liquidating your company

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Liquidating your company

Even when a company has no assets and a relatively small debt, the liquidator has a duty to assess and investigate directorial conduct in case of wrongful trading. In short, directors are too close to the situation to be allowed to do it themselves, and have a legal requirement to use an IP.

Some company directors who wish to close their company fear that without the money to pay an insolvency practitioner they will not be able to complete the process. The first thing to mention is that liquidators fees are taken from the realisation of assets so, assuming the company has some assets in addition to its debts, you would be able to proceed with using a firm of insolvency practitioners. They are legally entitled to take their agreed fee from the sale of company assets as a preferential creditor.

In this scenario, company directors have less control over the process and outcome, since the creditors will appoint their own insolvency practitioner. Where a company has neither liabilities or assets, it may be possible to strike-off the company. Read more about company strike off. Directors considering liquidation should be aware that the liquidator has a duty to examine the behaviour of the directors in the period preceding insolvency.

The Insolvency Practitioner will be looking for evidence of directorial misconduct, principally wrongful trading. Consulting with a qualified insolvency practitioner at an early stage is the safest way to understand your situation and protect your interests. Choosing voluntary liquidation within your own timeframe is a preferable scenario to being forced into compulsory liquidation via a Winding Up Order.

This will depend on the size of the company and its debts, and the complexity of the case. Hide this message. Skip to main content. Home Business and self-employed Selling your business and closing down. Liquidate your limited company. Print entire guide. Related content Company Voluntary Arrangements Company director disqualification Wind up a company that owes you money Find an insolvency practitioner Closing a limited company.

Explore the topic Business debt and bankruptcy Selling your business and closing down Closing a company. Is this page useful? Maybe Yes this page is useful No this page is not useful. Thank you for your feedback. There is something wrong with this page. What were you doing? What went wrong?

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At any time after a company or close corporation has been dissolved, the liquidator or other person with an interest may apply to a court for an order declaring the dissolution to have been void, or any other order that is just and equitable in the circumstances and if the court declares the dissolution to have been void, any proceedings may be taken against the company or close corporation as might have been taken if the company close corporation had not been dissolved.

To view information on how to register as a customer, click here. If you are already registered as a customer, and know your customer code and password, proceed to step 2. For the bank account details, click here. Use your customer code as reference when depositing money into the CIPC bank account. Print and complete form CoR Scan and e-mail the completed and signed documents together with supporting information to liquidations cipc.

The following supporting documents must be included in your e-mail for winding up by the company or creditors:. Important: Queries relating to transactions already lodged should only be submitted once the Service Turnaround Time has lapsed. You can track the progress of your document by clicking on " Track my transactions " on the home page. E-mail the following to liquidations cipc. Companies and Intellectual Property Commission.

Liquidation and deregistration are not the same thing. Liquidation Liquidation implies that the business is not able to pay its debts. The liquidation may come about: as a result of a legal court process, or by a request of the creditors, or the company or close corporation may voluntary decide to be liquidated.

Voluntary Winding up of a company Solvent company A solvent company or close corporation may be wounded up voluntarily by members or by a creditor by the adoption of a Special resolution by the company or close corporation. Note: It should be noted that the above requirements are determined by the Master itself and therefore, the above may not be correct.

The steps required will differ depending on whether your company is solvent or insolvent , so this article is broken up into two parts. Regardless of whether your company is solvent or insolvent, you will need the services of a licensed insolvency practitioner to liquidate your company. The process of liquidation is complex and requires a professional to fairly distribute the proceeds of any liquidated assets to company creditors.

Even when a company has no assets and a relatively small debt, the liquidator has a duty to assess and investigate directorial conduct in case of wrongful trading. In short, directors are too close to the situation to be allowed to do it themselves, and have a legal requirement to use an IP. Some company directors who wish to close their company fear that without the money to pay an insolvency practitioner they will not be able to complete the process.

The first thing to mention is that liquidators fees are taken from the realisation of assets so, assuming the company has some assets in addition to its debts, you would be able to proceed with using a firm of insolvency practitioners.

They are legally entitled to take their agreed fee from the sale of company assets as a preferential creditor. In this scenario, company directors have less control over the process and outcome, since the creditors will appoint their own insolvency practitioner. Where a company has neither liabilities or assets, it may be possible to strike-off the company. Read more about company strike off. Directors considering liquidation should be aware that the liquidator has a duty to examine the behaviour of the directors in the period preceding insolvency.

The Insolvency Practitioner will be looking for evidence of directorial misconduct, principally wrongful trading.

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