Liquidation – Voluntary

Liquidations are often referred to as the start of the end of a company and usually, this is the case. The liquidation of a company can occur via several routes however in most cases, where the company decides it can no longer continue to trade as it is insolvent, the shareholders will appoint a liquidator.

To commence a liquidation the shareholders will typically sign a written shareholder special resolution that requires at least 75% of the company’s shareholder voting rights to be effective.

In certain circumstances a company may elect to appoint a liquidator by resolution of the board of directors provided the company’s constitution provides for this.

Importantly, the option to appoint a shareholder appointed liquidator is only available and effective if that liquidator is appointed within 10 working days from the date of service of any liquidation application by a petitioning creditor.

Directors and shareholders are encouraged to take proactive steps in assessing the solvency and continued viability of their business when served either statutory demands or liquidation applications.

If you are a shareholder or director of a company that needs to discuss insolvency options, please contact us to discuss the options available to you.

 

Other areas in Liquidation: Court Appointed, Solvent

 

Khov Jones is a specialist insolvency and consulting firm that delivers practical solutions to clients that encounter often challenging and complex issues.

With over 20 years of commercial experience providing specialist advice we have the skills and expertise to provide robust advice to clients when it counts.

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Email: contact@khovjones.co.nz