Corporate Insolvency
A CVL has for many years been the most common way for directors and shareholders to deal voluntarily with their company's insolvency.
The directors agree to convene meetings of shareholders and creditors in order to resolve to place the company into liquidation. It is normal for the company to then cease to trade, with the company's staff being dismissed.
Once appointed by members and then creditors (the creditor's choice in liquidation prevails), the liquidator has three main duties:
| i. |
To realise the company's assets; |
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| ii. |
To agree the claims of the company's creditors; |
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| iii. |
To investigate the company's affairs and the directors conduct. |
For further advice and assistance regarding any aspect of the above insolvency procedure, please contact BRI. We will discuss, free of charge, any further implications and alternatives with you. |