Corporate

Members Voluntary Liquidation

• The route to release Company assets to Members (on the conclusion of trading or retirement)
• This is only applicable where the Company is solvent (the assets exceed the liabilities)
• Company Reconstructions (schemes under S110 IA1986) require this form of Liquidation as part of the arrangements

Administration Order

• The procedure available if the Company is, or may become, insolvent, by way of an application to the Court for a reasonably immediate appointment of an Administrator.
• The objectives of an administration are either:
  • the rescue of the company as a going concern, or
  • achieving a more advantageous realization of assets for the benefit of creditors than would be likely in liquidation, or
  • to enable payment to the secured or preferential creditors.
• The objectives are listed in the order they must be considered by the administrator and must always take into account the interests of all the company’s creditors.
• The Administration Order enables the Administrator to consider ongoing trading and/or the sale of the business, whilst protecting the Company (in the short term) from creditor pressure.

Creditors Voluntary Liquidation

• The route (and most widely used) to conclude a Company’s affairs, if it is insolvent.
• Utilised in terminal situations, whereby long term ongoing trading by the Company is unlikely

Company Voluntary Arrangement

• This is a mechanism whereby an insolvent company proposes an agreement to its creditors to delay or compromise the payment of debts.
• It is usually used to assist ongoing trading, to effect a better return to Creditors than the disposal of the assets/business.

Compulsory Liquidation

• Usually initiated by Creditor(s) by a petition to Court and administered by the Official Receiver or an external liquidator.
• Almost always in terminal situations