"voluntary company liquidation" procedures in the UK
Thread poster: MariusV

MariusV  Identity Verified
Lithuania
Local time: 12:56
English to Lithuanian
+ ...
Oct 22, 2015

Hi,

I am fighting one very stubborn scam (a former translation agency from the UK). And I have one important question for those colleagues who probably know a little bit about the UK legal system. The question appears to be a small one, but it is very significant to me:

If a company (its directors) decide they want to "liquidate the company voluntary", what is the exact procedure? As far as I understand:

1. Directors of the company shall vote and decide their company shall go for "voluntary liquidation", i.e. there shall be a certain formal document/decision of this plus minutes of the meeting?

2. Then this fact shall be communicated to ALL creditors of the company (i.e. the creditors shall be informed that the debtor company directors decided to go under voluntary liquidation) and the meeting of the creditors shall be summoned for this purpose (based on the procedures, and dates established by the law);

3. Then creditors may decide whether they "approve/agree", or "disapprove/protest" against that voluntary liquidation? And if the creditors agree, then all those papers (decision of the company directors, decision of the creditors' meeting, + any other relevant papers) are sent to the court of law;

4. And the court of law, on the basis of all that, passes its decision to "allow" the requesting company to start "voluntary liquidation procedures"?

The KEY issue is the 4th question, i.e. is the decision of the court is needed for that? OR the creditors "alone" can decide (i.e. no court is needed at all)...

I would appreciate very much any of your advice and information. I am determined to fight against real tough scammer company and to go till the end (they stole a substantial amount from me)...


 

Dan Lucas  Identity Verified
United Kingdom
Local time: 10:56
Member (2014)
Japanese to English
Start with the Gazette Oct 22, 2015

MariusV wrote:
If a company (its directors) decide they want to "liquidate the company voluntary", what is the exact procedure?

Not being a lawyer or experienced I can't help with the details, but as I understand it events of this kind have to be announced in the Gazette. Also try the UK government's page here. Those are two possible starting points. Also this page is a useful summary.

Regards
Dan

[Edited at 2015-10-22 23:03 GMT]


 

Kirsten Bodart  Identity Verified
United Kingdom
Local time: 11:56
Dutch to English
+ ...
From gov.uk Oct 23, 2015

it seems you don't need a court order to liquidate (only probably if the company is declared insolvent, but that's mandatory liquidation).

https://www.gov.uk/liquidate-your-company/overview gives a comprehensive list of procedures to follow. The only time you do seem to need a court order if you are in voluntary liquidation (whether due to insolvency or not) is in order to access the company's bank account. A liquidator is appointed once the decision to liquidate has been taken by the appropriate people, which means the directors have no longer any authority. Therefore they need a court order to access any of the company's funds. All perfectly logical if you think about it.


 


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