Liquidation
We all know that sometimes, no matter how hard you try, things don’t go to plan. You may have done all your planning and come up with the best product ever, but if your competitor beats you to it or has a better advertising campaign the company may not be able to survive. In these circumstances, it is always best to take action as quickly as possible.

Having spoken to many directors over the years, we have learned that the main worry time is between realising that there is a problem, and doing something about it. If your company cannot pay its debts (and there is no likelihood of trading out of it), you can either put it into liquidation or wait for someone else to do it.

We would usually suggest that you tell your creditors of the financial problems, and then call meetings to put the company into Creditors Voluntary Liquidation. The first of these meetings is of the directors, when they decide to put the company into liquidation, and instruct a Licensed Insolvency Practitioner to tell the creditors about the next meetings, and prepare the reports and documents for those meetings. That Insolvency Practitioner will also deal with all questions the creditors raise. About 3 weeks later, there are then meetings of the shareholders and creditors, at which a Liquidator is appointed. They then deal with realising the assets and paying the costs and creditors.