A company may elect to appoint a liquidator even if it is not insolvent. These liquidations are typically used when the company is no longer needed for the purpose it was created and there are surplus assets that need to be distributed to the shareholders or to crystalise any contingent liabilities that may arise in the future.
Solvent liquidations can be a tax effective method by which shareholders can receive distributions of the company’s assets tax-free. This will typically occur upon sale or closure of the company’s business or a structured reorganisation of a group of companies.
If you require a liquidator to be appointed on a solvent basis, please contact us to take advantage of this process.
Other areas in Liquidation: Court Appointed, Voluntary
