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

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 meeting of creditors which is generally held virtually for creditors to attend, ask any questions they have and if they so wish to put forward a Liquidator of their choice.

This process is covered in our initial meeting.

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

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.

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

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.

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.

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

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