Insolvency Practitioners,
Registered Auditors & Accountants,
Tax Consultants.

Tel: 091 565 953 Email: info@cobtax.com

A Creditors Voluntary Liquidation is usually instigated by the directors of the company after seeking financial advice from their accountants and in certain cases from an insolvency specialist, and after deciding to place the company into liquidation as it is insolvent.

Directors should not ignore signs of insolvency and continue to trade while insolvent. If it is proved that a director knew or ought to have known that the company was not in a position to pay its debts as they fall due they can, in certain instances, be found personally liable for the debts of the company.

Convening the Creditors Meeting

In accordance with The Companies Act 1963, the company, after passing a Resolution to convene a Creditors Meeting and appoint a liquidator, must give 10 days clear notice to all creditors with the Notice of Creditors Meeting accompanied by a General Proxy and a Special Proxy.

The Meeting of Creditors

The purpose of a Creditors Meeting is to:

• Present a Statement of Affairs to each creditor and review the financial position of the Company
• For the Members to nominate a liquidator and for the creditors to either confirm this nomination or appoint an alternative liquidator
• To appoint a Committee of Inspection.

Following the appointment of a Liquidator

Once a liquidator has been appointed to a company he or she is then responsible for realising the assets of the company in the best interests of the Creditors. All officers of the company cease to have any powers from the date of the liquidation and as such the Liquidator is the only person who can act on behalf of the Company.

The liquidator will carry out investigations into the conduct and actions of the directors and the reasons for insolvency and this will form part of his or her Report to the Office of the Director of Corporate Enforcement.

How O'Boyle & Associates can help?

O"Boyle & Associates can advice you on all aspects of a Creditors Voluntary Liquidation and can assist directors, creditors and accountants with any queries on voluntary liquidation. 

For further information on Creditors Voluntary Liquidation, please do not hesitate to contact us.