Expert Legal Adviser MILTON FIRMAN asks: How do I Liquidate a Company?

Oct. 25, 2011 - PRLog -- You face a legal problem.  You may have sought advice and felt let down by the system.  Talk of hourly rates and vast fees.  Appointments you have to wait for, and even travel into town.  Delay, uncertainty and worry, lots of worry.  Now Milton Firman turns all of this on its head.

He advises immediately.  He is on call 24/7.  No appointments required.  He will see you at your home.  In the evenings or at weekends.  Fixed fees or no fees at all.  He is fearless and straight talking.  He is an experienced legal adviser, an expert in this field of law and offers advice regarding the best way forward for you.

How do I liquidate the Company (or “wind up”) the Company?

Liquidation is the process by which a Company is brought to an end. Liquidation is sometimes referred to as dissolution or winding up.

Compulsory Liquidation is when a creditor petitions for the winding up of the Company. In addition such a Petition may be issued by the Company itself, contributories, the Secretary of State or the Official Receiver.

You need a ground for compulsory winding up namely,

•The Company has so resolved;

•It has not commenced business within the statutorily prescribed time (normally one year) of its incorporation;

•The Company is unable to pay its’ debts as they fall due;

•It is just and equitable to wind up the Company.

An Order will not generally be made if the debt is genuinely disputed. The “just and equitable” ground is often associated with protecting the interests of the minority shareholder or shareholders.

Once there is a liquidation, dispositions of the Company’s property are generally void, and litigation involving the Company is generally restrained.

Initially, the Court appoints an Official Receiver, and one or more liquidators.

In the case of a VOLUNTARY LIQUIDATION. This occurs when the members of the Company resolve to voluntary wind-up the affairs of the Company and dissolve it. If the Company is solvent, and the members have made a declaration to this effect, then the liquidation will proceed as a members’ voluntary one. Otherwise it will be a creditors’ voluntary winding up.

The main purpose of a liquidation where the Company is insolvent is to collect the Company’s assets, determine the claims against the Company, and satisfy the claims wherever possible.

Before any claims are met, secured creditors are able to enforce their claims.

After the removal of assets subject to retention of title clause, there is distribution in the following order:

1.Liquidator’s costs

2.Creditors with fixed charge over assets

3.Costs incurred by an administrator

4.Sums due to employees for salary

5.Creditors with floating charges

6.Creditors without security over Assets


For more information, here is the deal.  Call Milton on 0161 485 1100 or 07909 900449 at any time or him at milton@miltonfirman.co.uk

Write to him at 24 Byrom Street, Altrincham WA14 2EN.

He will always be pleased to speak to you at any time.  In confidence.  With confidence.

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