Pre Liquidation Review & Planning
Insolvency planning and a Creditor’s Voluntary Liquidation
Insolvency planning & review
At HBG Advisory, we take corporate insolvency seriously. A failed company’s impact may affect many companies once a liquidator is appointed. Therefore, planning and reviewing have a severe as a Director; your companies’ pressure should not rush you into placing your limited company into liquidation without any pre liquidation planning or review having taken place. Pre liquidation planning remains vital to directors, so they may appreciate and agree on the proposed result. Important when coming to terms with having a revue and its benefits.
Before any action occurs, a company entering a creditor Voluntary Liquidation therefore requires a professional review of your company’s financial position needs taking place.
The review is then an essential and straightforward fact find’ which does not take much time at all and which might involve:
- Prepare an enquiry pack;
- Examine prior year’s accounts;
- Confirming any charges registered and legality;
- Test forecasts against actual and possible future;
- Evaluation of the company’s customers and market.
- Analysis of the company’s key processes
- A review of the director’s ultimate retirement plans.
However, the review might highlight an altered proposal other than a Creditors Voluntary Liquidation (“CVL”) for your limited company.
Suppose we assume the pre liquidation planning review recommends a ‘Creditors Voluntary Liquidation’ and a phoenix new company. Therefore, the review will cover:
- Applying for Turnaround finance;
- Re-use of the former companies name;
- When to commence the Creditors Voluntary Liquidation.
Pre liquidation planning through a brief free professional review, remains necessary to secure the best outcome for:
- Your business and
- The company’s creditors.
Look at the review as a form of insurance if ever examined why you approved your actions, acting as a limited company director. IMPORTANT!