DIY Liquidation

HiKite

Hi there,

my LTD company needs to be liquidated, but there are no funds left to do it. Has anyone reading ever gone through this process themselves? If so could give me some pointers? Thanks!

DoMyBooks

Is there creditors involved? Or have you paid everyone including the revenue off

dbran

Hi Futuresounds

You are going to have to pay the liquidator out of your own resources to have your company liquidated if there is no money left. If you do not have a liquidator appointed and you subsequently allow your company to be struck off then all the assets of the company become the property of the state. As the company will no longer exist you loose limited liability for future debts if you continue to trade.

You cannot liquidate the company yourself DIY because by law, a liquidator cannot be a director, auditor or servant of the company eg accountant, solicitor etc. I presume you are a director.....


Kind Regards

Dbran

HiKite

@ Dbran, thanks for the advice, I heard that you could do it yourself and kind of doubted it. Cheapest quote I have for liquidation is €3K, unless anyone out there knows someone who could do it for less?

@ DoMyBooks, there were a couple of smaller creditors, who have written off minor debts, Rev is owed a few quid but not much; and most of the larger suppliers will be taken care of with a new venture I am starting up.

I just want to clear the decks as required, before the companys year end.

thanks again.

EKRIUQ

There is an alternative route to go down instead of the expense of Liquadation, as you have no assets it could suit you.

Affordable restructuring for small companies - Section 279


If a company is insolvent, it can do an informal scheme of arrangement in which it gets its creditors to accept a write down of some of the money due. There is a good article on the topic on the www.liquidation.ie website.

But what is news to me is that under Section 279 of the Companies Act 1963, if a company can come to an arrangement which gets the support of 75% of its creditors by number and value, it can force the other 25% to accept the deal.

Quote:
279.—(1) Any arrangement entered into between a company about to be, or in the course of being, wound up and its creditors shall, subject to the right of appeal under this section, be binding on the company if sanctioned by a special resolution and on the creditors if acceded to by three-fourths in number and value of the creditors.

(2) Any creditor or contributory may, within 3 weeks from the completion of the arrangement, appeal to the court against it, and the court may thereupon, as it thinks just, amend, vary or confirm the arrangement.
So if a company has assets of €50,000 and creditors of €100,000 it can offer to pay all its creditors 50 cents in the euro and if 75% agree, then it's binding on the rest.

The company is then solvent and can be simply struck off without the costs of appointing a liquidator.

I could find very little online about it. This is the best article I have come up with.

DoMyBooks

Why not run your new venture through your existing limited company. This will save you liquidating and setting up again. If you intend to pay off your debts it wont make any difference.

Futuresounds wrote: »

@ Dbran, thanks for the advice, I heard that you could do it yourself and kind of doubted it. Cheapest quote I have for liquidation is €3K, unless anyone out there knows someone who could do it for less?

@ DoMyBooks, there were a couple of smaller creditors, who have written off minor debts, Rev is owed a few quid but not much; and most of the larger suppliers will be taken care of with a new venture I am starting up.

I just want to clear the decks as required, before the companys year end.

thanks again.

AMPSound

Much stock to get rid of?

HiKite

None, thanks anyway.

AMPSound wrote: »

Much stock to get rid of?