Liquidating the company
There are three types of liquidation/close down in the UK: Now read guides below or click on Liquidation Flowchart for a quick guide.NEW March 2016 – Complete Guide to Creditors Voluntary Liquidation – 50 page PDF free to download He or she runs the liquidation, fills out all the forms, calls all meetings and investigates the conduct of the directors before the liquidation. He then works out the debts and pays the creditors from the assets, if there were any.You can get on with a new business or job, the company is closed, leases cancelled and all the staff made redundant.Liquidation usually means the company’s trading stops and it’s assets are turned into cash or “liquidated”.
The shareholders then ask a licensed insolvency practitioner to call a creditors meeting as soon as possible (not less than 14 days notice is required, but its usually 21 or so days).
All other possible liabilities, like employment or renting a property, are stopped.
It really is the end of the company, but the “business” may survive.
331, a liquidating distribution is considered to be full payment in exchange for the shareholder’s stock, rather than a dividend distribution, to the extent of the corporation’s earnings and profits (E&P).
The shareholders generally recognize gain (or loss) in an amount equal to the difference between the fair market value (FMV) of the assets received (whether they are cash, other property, or both) and the adjusted basis of the stock surrendered.
If they can’t be sold they will go forward to an auction once the company is formally in Liquidation. We make sure there is nothing likely to be a problem once the company is in Liquidation.