If you are dealing with business insolvency or considering liquidation for taxation purposes, we have a team of highly trained staff which including Insolvency Practitioners who are available to provide confidential advice.
We have wide experience of the three most frequently used types of liquidation in Ireland: creditors’ voluntary liquidation; members’ voluntary liquidation; and court liquidation.
CREDITORS VOLUNTARY LIQUIDATION (CVL)
A creditors’ voluntary liquidation (CVL) is frequently used by insolvent companies that have no reasonable prospect of survival. It stops the company’s creditors’ position from deteriorating and helps bring closure to an unsustainable position for a company and its directors, with all the attendant anxiety and stress.
In a creditors' winding up the company is obliged to summon a meeting of the creditors. The creditors must receive at least ten days notice and their meeting must be held on the same day or the day after the meeting of the members at which the resolution for voluntary winding up is to be proposed. At that meeting, a full statement of the company’s affairs together with a list of creditors laid before the creditors’ meeting.
Creditors may ask questions relating to the company's affairs. Some of these questions may include:
- When did the company cease trading?
- At what stage did the directors first realise the company was insolvent?
- Where there any material Provide details of all major payments made in the past three months?
- When was the last set of audited accounts prepared?
- Did the bank have personal guarantees as security for the company’s lending?
- Who owns the building that the company operated from?
- Will the directors continue the business through another company?
Once the liquidator has been appointed they will look to secure the assets of the company, process any employee claims for wages, minimum notice and redundancy, investigate the reasons for the liquidation and ultimately submit a report to the ODCE where they may request for the directors to be restricted from being appointed to other companies. A director of an insolvent company can be held personally liable (without limitation of liability) for a company’s debts if found liable for reckless and/or fraudulent trading.
Members’ voluntary liquidation (MVL)
Members’ voluntary liquidation (MVL) is a process used to wind up a solvent company that has ceased trading or is dormant. It offers savings on ongoing audit and accounting costs and in management time previously taken up with the preparation of financial information and tax returns.
VOLUNTARY STRIKE OFF (VSO)
Voluntary strike off A company that ceases to trade, or has never traded, and has no outstanding creditors can request that the Registrar strike off the company. Under the Companies Act 2014, this procedure has been placed on a formal setting.
Furthermore, the request for a voluntary strike off in Ireland will not be considered by the Registrar where the company has any assets or liabilities exceeding €150.
In addition, all filing requirements with the Companies Registration Office (“CRO”) must be up to date, and all previous filing penalties must be cleared at least two weeks before a request for strike-off.