Creditors Voluntary Liquidation

Our expert advisors at DCA can assist directors when they find that their company may be insolvent.

The term insolvent can be simply that the company cannot afford to pay its debts as they fall due, or the assets are less than its liabilities.

We can assist the director or directors to place the company into a process called Creditors Voluntary Liquidation (CVL) where the company has or will cease trading and needs assistance to bring its affairs to a timely closure.

At an initial meeting or during a telephone discussion, which is free and without obligation, we will discuss with you the process, identify any issues which may arise and discuss timings.

Should a CVL be appropriate we will then correspond with interested parties such as employees, landlords, creditors and others that may be required.

Frequently Asked Questions

How do I place my company into Creditors Voluntary Liquidation?

The process is relatively straight forward and commences with a meeting of the board of directors. Notice is then sent to shareholders of the company and to creditors of a meeting to place the company into liquidation.

A shareholders meeting is held for the shareholders to agree to place the company into liquidation, followed swiftly by a creditors decision procedure; a meeting of creditors held virtually for creditors to attend or via deemed consent.

This process is covered in our initial meeting.

Do I need to attend any meetings?

Yes. A director is nominated to chair both meetings and will be required to attend our offices on the chosen date.

Does anyone need to agree the liquidation?

There are two resolutions passed at the shareholders meeting; one to place the company into liquidation which requires 50% of shareholders to agree and a second resolution to appoint a liquidator which requires 50% of shareholders to agree.

Creditors cannot oppose the liquidation, but they are able to put forward their own nomination for liquidator if they have the required values for voting.

How long does the initial process take?

Generally to place a company into liquidation will take a minimum of 14 days from instruction and receipt of the relevant paperwork.

What will happen to my employees?

Employees can claim arrears of wages, pay in lieu of notice, holiday pay, arrears of pension contributions and redundancy from The Redundancy payments Office. We offer guidance and support to employees as part of our fee.

What happens to my company assets

An agent will be instructed to value the assets. Should any interested parties become known we will inform the agent and discussions will be held between the agent and those parties.

Can I be a director of another limited company?

Yes. There are certain restrictions on the re use of company names, which forms part of our initial advice meeting.

What happens to my bounce back loan?

If you have taken a bounce back loan there are no personal guarantees. However, if you have misused Bounce Back Loan funds you may be held personally liable for the balance of the loan or for any payments which are deemed not business expenses.

There are also implications where the amount of the loan obtained was more than the company was entitled to

Get in Touch

Contact us to request more information or to book a no obligation meeting to discuss your situation.

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    CVL Client

    Both Debbie and Luke are very professional and thorough. Everything was explained from the beginning and I am very happy with the overall service provided.