A Creditors’ Voluntary Liquidation (“CVL”) is instigated by the company’s directors upon realisation that the company can no longer afford to pay its liabilities as they fall due or its assets exceed its liabilities. Directors have a duty to act in the best interests of the company and could face personal consequences if trading is continued at a time when it is known that the company has no reasonable prospect of paying its liabilities.
Once instructed we assist the directors with the necessary formalities in order to pass resolutions to wind up the company and appoint a liquidator. In most instances the business has come to the end of the line and it is a matter of realising the company’s assets for the benefit of its creditors. It is possible to sell viable elements of the business on a going concern basis, again the sooner we are contacted the more options available to the company.
If you believe your company is facing financial difficulties we would encourage you to speak to contact us, in order to discuss your options.