The implications of, and procedures involved in, winding-up a company have become increasingly onerous with the advent of the Company Law Enforcement Act 2001 and the establishment of the Office of the Director of Corporate Enforcement. The duties and responsibilities of directors and the manner in which they conducted the affairs of the insolvent company in the two year period leading to the insolvency come in for increased levels of scrutiny.
No matter what way it is looked at Insolvency for the vast majority of directors / business managers is a highly stressful situation.
Our experienced insolvency team can provide the help you need during this period. Also as a firm with a comprehensive international presence we can, in association with colleagues in our overseas offices, undertake international and multi-jurisdictional assignments.
There are essentially two procedures which may be employed in the liquidation of an insolvent company, namely a Creditors Voluntary Liquidation and an Official or Court Liquidation. The liquidation of a solvent company is referred to as a Solvent of Members Voluntary Liquidation.
In any liquidation, the onus is on the Liquidator to maximise the return to the Creditors of the company and Mazars’ extensive experience in both the areas of asset realisation and Corporate Finance places us at a considerable advantage in the extraction of value for the benefit of the body of Creditors.
For more information email email@example.com
Want to know more?
Solvent or Members Voluntary Liquidation
The evolution of tax legislation allied to the practical difficulties of ascribing value to individual shareholdings in an amicable or otherwise end to a shareholder relationship has resulted in a greater incidence of this process.
Assets can often be more efficiently distributed in a liquidation situation than would otherwise be the case under alternative distribution methods. The task of the liquidator in such circumstances is to maximise the value and efficiency of the process to the benefit of the shareholders.
Official / Court liquidation
The procedure of official/court liquidation arises where a company through its directors or creditors makes an application to the High Court to have a Liquidator appointed to a company.
The appointed liquidator is an agent of the High Court and hence the term Official or court liquidator. The procedure is usually employed by creditors seeking recovery of a proven or undisputed debt by means of section 214/215 of the Companies Act, 1963.
Alternatively it is also used by a company wishing to avail of immediate protection in circumstances where the notice periods associated with the creditors voluntary liquidation might result in assets or the goodwill of a company being dissipated. In such circumstances the court may deem it appropriate to appoint a "provisional liquidator".
Creditors Voluntary Liquidation
Creditors voluntary liquidation is instigated by the directors of the company calling a meeting of the board to discuss and consider the financial circumstances of the company.