How It Works

The Directors instruct an Insolvency Practitioner to advise if this is the correct regime and assist with the necessary paperwork. The Directors hold a Board Meeting to resolve to place the company into CVL and nominate their choice of Liquidator. The Board Meeting will also resolve to convene a meeting of the company’s members to seek the appropriate winding up resolutions.

The company’s articles will state the notice period required to be given to members, however the meeting can be held at shorter notice if members consent. The creditors are provided with 3 business days’ (+ postage allowance) notice for the decision on the appointment of the Liquidator

The creditors will receive a report detailing events leading to the board meeting and a statement of affairs showing the company’s present financial position. The nominated Liquidator assists the Directors to prepare these.

At this meeting they will be asked to pass a resolution placing the company into Liquidation and to appoint a Liquidator.

Deemed consent is sought from creditors to confirm the Liquidator’s appointment

If the creditors raise no objections to the members’ choice of Liquidator, the appointment is ratified.

The creditors may instead ask for a physical meeting to be convened. At that meeting they may be able to seek to replace the nominated Liquidator with their own choice. Whether or not the creditors can seek a physical meeting and/or have their own choice of Liquidator is determined by statutory rules.