The liquidation process
This process can be different depending on the circumstances, e.g. whether the company is trading, or depending on what assets it has.
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Company is unable to pay its creditors
The company is unable to pay its creditors and the company or the shareholders have it placed into liquidation.
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A liquidator is appointed
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The liquidator notifies the Companies Office, and advertises the appointment.
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Creditors’ meeting
A creditors’ meeting may be held to appoint a replacement liquidator.
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The administration of the liquidation starts.
This may include;
- closing the business
- identifying and selling the company assets
- contacting and receiving claims from the creditors
- sending progress reports to the creditors
- investigating possible offences or unusual transactions
- making payments to creditors (dividends).
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Completion
The final report is sent to creditors and the Companies Office is notified. The company is then removed from the Companies Office Register.
Liquidation life-cycle
Note: This is indicative only - actual liquidations may differ depending on circumstances.
1 Made on application by creditor / director / shareholder / administrator / Register.
2 Passed by Shareholders, or Board on occurrence of event specified in constitution.
3 Company may also be in Receivership or Voluntary Administration.
4 Liquidation may be terminated on application by director / shareholder / creditor, etc.