What We Cover?
- Company Voluntary
If the company cannot be rescued then the administrators can work on a strategy to ensure existing creditors will be better compensated than if the company was simply wound up.
An administrator can be appointed by the order of the court, by the directors of the company themselves or by the holder of a floating charge. If you are owed money by a company that has been placed in administration then it will be a comfort to know that the administrator has a duty to act in the company’s creditors’ best interests.
Company Voluntary Arrangement
It is important to seek legal advice early on if you are thinking of proposing a CVA to your creditors. Our experienced commercial team can assist you in negotiating a strong proposal to present to your current creditors which will take the stress off the current situation and put you in a position to get your company back on its feet.
If you are a creditor being presented with a CVA, we can talk you through the process and advise you as to whether a CVA will work in your best interests.
Liquidation or Winding Up
- Not be able to pay its financial obligations; and
- Receive a 75% majority in favour of the liquidation when a vote on the matter is put to the shareholders.
A company can also be placed into compulsory liquidation by the court.
If a company is liquidated it will be wound up and its assets will be used to pay its creditors.
If your company is being placed into liquidation, either voluntarily or by a court order it is important that you seek legal advice as directors of liquidated companies can be forbidden to own another company for a number of years, and may even be prosecuted.
If you are a creditor of a company currently being wound up, our experienced team can advise you on your rights and where you stand with regards to receiving payment.
The commercial team at Saracens Solicitors has the expertise a major creditor requires and can advise on how and when a Receiver should be appointed.
Our client-focused, multi-lingual commercial lawyers can advise directors, shareholders and creditors if a company they are associated with is becoming, or has become insolvent, whether the company is in the UK or is based abroad, or has subsidiaries in overseas locations. To talk with one of our practitioners please request a call back or phone us on 020 3588 3500.
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