Liquidation refers to the complete sale of the business' assets.This may be the best option if you have no other option when business closure is imminent, such as a merger or acquiring emergency capital.
The general answer is you can be a director of as many companies as you like at the same time.
However, if you have been the director of a liquidated company and you set up a new company it cannot have the same or a similar name to the old company so as to lead to possible confusion of creditors of the old company.
The assets of the company are realised and the proceeds are distributed.
The company’s liabilities must be paid first, any remaining surplus will then be distributed to the shareholders.
The cost benefit to you and your company (A lower and certain fixed price for this alternative to liquidation) The minimum price for a creditors voluntary liquidation is often quoted by others as being from £2,500 plus VAT when what they might really mean is that that quoted cost figure is merely the sign on fee - and more charges are payable later out of asset realisatons in the follow on liquidation.
By contrast Purnells will, in most instances if a liquidation is needed, charge no upfront fee thus making it a free liquidation as far as your personal pocket is concerned.
There are three alternative ways in which you could progress the "I can't afford a liquidation" or "Cheap Liquidation" process: - Firstly the process would only cost £10 if you do all the work yourself.
- Secondly and alternatively for a small fee we can send you a work plan, a work check list, standard letters and forms and a copy of the relevant Sections of the Companies Act 2006.
This is called passing off and under section 216 Insolvency Act 1986 it can lead to criminal action against the director or being held liable for all of the debts of the new company should it too go into liquidation. It is possible to buy the name through administration, or the liquidator can agree to sell the name and a court application can support this.
However, any court application will need to show why the rules of section 216 should not apply to you. It should be borne in mind that if you were to buy the business you will need to pay a fair price and this will have been valued by a chartered surveyor or asset valuer.
In collaboration with suitable audit professionals and liquidators, we can also coordinate the dissolution of Maltese companies in a timely manner.