|
A Creditors Voluntary Liquidation is
commenced by the direrctors or shareholders. A CVL is not
commenced by creditors.
While the directors of a limited company
have a duty to place their company into liquidation they have
a prior duty in
law to review the situation to see if steps other than liquidation
is best for creditors.
That review provides the directors time
to plan the best outcome (for directors and creditors) rather
than being rushed into what might be an unnecessary CVL.
The review might suggest a better approach
than a CVL such as:
- An informal work out
- A company restructure:
- via a CVA
- via an Administration Order
- via a CVL and the commencement
of a phoenix re-start company.
- By discussing the matter with
the company bankers and arranging for the appointment of
an Administrative Receiver - with a re-start company arising
out of the ashes of the old company.
Purnells can provide you with that
professional review.
|
