Creditors Voluntary Liquidations

When a company is insolvent, i.e. their liabilities are greater than their assets, the shareholders can resolve to voluntarily ‘wind-up’ the business. This process is driven by the company directors.

A meeting of the company’s creditors will be convened to approve the appointment of a Liquidator. Once appointed the liquidator would realise the company's assets and distribute the money realised to creditors. There are occasions where a company has more assets than are stated in their “balance sheet” and BRS will endeavour to ensure that after a thorough investigation of the company’s trading history, further realisations are made to enhance the dividend prospects to creditors.