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If you want advice on procedure and voting tactics at creditors meetings in Creditors Voluntary Liquidations then submit this form & Ray Purnell will get in touch with you.

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The Procedure To Place A Limited Company Into Creditors Voluntary Liquidation

 

 

 

While this page is about the "Procedure to place a company into Creditors Voluntary Liquidation" let's first assume that you have examined the insolvency options with your insolvency practitioner and that you have chosen the creditors voluntary liquidation route. In your particular instance you can see the benefits of liquidation outweigh those arising in the alternative insolvency processes available to limited companies generally. 

 

Having made the decision on the chosen insolvency vehicle (or option) you may now wish to learn more about the procedure to place a company into Creditors Voluntary Liquidation.


The procedural steps to place your company into creditors voluntary liquidation are:


  • Firstly notices are signed by you as a directors of your company to call separate meetings of 
    • Your co- shareholders and
    • Your company creditors

 

  • Then at the shareholders meeting you and your co-shareholders nominate the liquidator of your choice. The liquidator ultimately appointed however, must be approved by the creditors.

  

  • At the later creditors meeting (usually half an hour after the shareholders meeting) a vote is taken by the creditors as to who they wish to be appointed as liquidator of your company . The value of a creditors vote is of first importance. For example the vote cast by one creditor who is owed £50,000 outvotes say ten other creditors whose value of votes together only come to £40,000.

  

If you want to delve deeper into the insolvency law then  click on "Section 98 of The Insolvency Act 1986" or email us for FREE INITIAL ADVICE and advice on procedure and voting tactics. In other words you as a director of an insolvent company can learn with us tactical advantages when you fully appreciate the procedure for placing your company into creditors voluntary liquidation concerning the  appointment of the liquidator of your choice.