© 2017 Fraser Frayne Insolvency Practitioners Limited
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Fraser Frayne Insolvency Practitioners Limited
Old Canal Cottage
Bath BA2 8BS
Tel: 01761 437754
Email: info@fraserfrayne.co.uk
This liquidation procedure is for solvent companies that, for whatever reason, wish or need to be brought to an end in an orderly fashion. It is also, potentially, a tax efficient way of shareholders (the Company Members) realising the Company’s assets and obtaining back their shareholder funds and the Company’s value.
The detail of what happens:
The Board of Directors resolve that the Company should be wound up and its assets realised and distributed to the Members.
The solvent Company will produce a report for its shareholders for them to consider in a meeting. A Licensed Insolvency Practitioner is nominated to be Liquidator to run the Liquidation if shareholders vote to place the Company into Liquidation.
The Members will decide how the Liquidator is to be paid and will pass certain resolutions in their meeting with regards to the operation of the Liquidation, including whether they wish to form a Committee to represent the shareholders as a body, assist the Liquidator in his task and supervise his activities.
The Liquidator’s task can be quite varied, but primarily is to realise the Company’s assets, distribute funds to creditors first ensuring they are all paid in full and then to distribute the remaining funds to the shareholders.
The Liquidator will work closely with the shareholders and directors to try and ensure that realisations are carefully tax planned, often this will be done well in advance of the Liquidation starting.
This outline is general and may not apply to a specific company’s circumstances for which a MVL may not be appropriate. The outline, views and suggestions set out are not intended to constitute professional advice, nor to be a substitute for specific advice.
Registered in England Co. No. 6934426 VAT No. 972 6786 64
Registered Office: Old Canal Cottage Dunkerton Bath N E Somerset BA2 8BS
Company Secretary: Jan Bartoszewski; Directors: Matthew Frayne BA, FIPA, FABRP; Fraser Frayne-Watt
Licensed Insolvency Practitioner licensed by the Insolvency Practitioners Association
Valiant House 4-10 Heneage Lane London EC3A 5DQ