Insolvency
If a company is no longer able to maintain its financial commitments as and when they fall due, this is known as corporate insolvency. Insolvent trading is illegal and company directors can be punished for knowingly trading a company while insolvent.
SM Solvency Accountants can assist you with:
Liquidation
Company liquidations are suitable when your company is insolvent and you want to formally wind up the affairs of the company. It involves realising the company’s assets, cessation or sale of its business, distributing the proceeds of realisation among its creditors and distributing any surplus among its shareholders. Liquidation will prevent any creditors from proceeding with legal actions against the company.
Voluntary Administration
Voluntary administration is a process where the directors of a financially troubled company or a secured creditor with a charge over most of the company’s assets appoint an external administrator called a ‘voluntary administrator’. The role of the voluntary administrator is to investigate the company’s affairs, report to creditors and recommend to creditors whether the company should enter into a deed of company arrangement, go into liquidation or be returned to the directors.
The voluntary administration process provides a moratorium period for the directors to consult with its creditors and stakeholders regarding the company’s future.
Receivership
A company most commonly goes into receivership when a receiver is appointed by a secured creditor who holds security over some or all of the company’s assets. The receiver’s primary role is to secured and realise the company’s charged assets to repay the debt owed to the secured creditor.
SM Solvency Accountants can assist you if your company is in financial difficulty or if you are a creditor and are owed money from a company. Visit our contact page to get in touch with us today.
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