Welcome to Butler & Co.

What is a Liquidation?

The liquidation or winding up of a company is when a company ends its corporate existence through a formal process of winding-up or liquidation whereby the company is ultimately legally dissolved. The methods of ending a company’s existence are either a members’ voluntary winding-up/liquidation, a creditors’ voluntary winding up/liquidation, or a compulsory Court winding up/liquidation.

What is a Liquidator?

A Liquidator is the person appointed to wind up the company and whose principal function is to dispose of the company’s assets, pay or settle its debts and distribute any surplus to its members. When a company is in liquidation, the Liquidator takes over the powers of the directors.

What is a Creditors’ Voluntary Winding Up?

If a company is insolvent the members of the company can elect at a meeting to wind up the company by way of ordinary resolution. The principal difference between a members’ and a creditors’ voluntary winding up is that the creditors can choose the liquidator. A publicly advertised meeting of the company’s creditors must be called for the day of the members’ meeting to wind up the company or the following day. The directors must prepare and present to the meeting a full statement of the company’s affairs, together with a list of the creditors and the estimated amounts of their claims. 

The liquidator will call any subsequent meetings and will present his final account before the final meeting of members and creditors. The company will be deemed to be dissolved, three months following delivery of the liquidator’s final account and a return of this final meeting. 

We can advise on the details of the process and the statutory filing requirements.

When is a Company deemed to be unable to pay its Debts?

A company is deemed to be unable to pay its debts when a creditor is owed in excess of €1,270 and has served a written demand on the company to pay the debt and the company has for three weeks failed to pay the sum due, or when a creditor has obtained a judgement for a debt but has been unsuccessful in attempting to have it executed by the sheriff, or when it is otherwise proved to the satisfaction of the Court that the company is unable to pay its debts.

Can a creditor submit a claim against the company even if they do not attend the creditor’s meeting?

Yes, the creditor is under no obligation to attend the creditor’s meeting. They can still submit a claim against the company in liquidation.

Is it possible for a third party to attend the creditors’ meeting?

Yes, the creditor must nominate the person chosen to attend the meeting by completing a general proxy form.

Is there any restriction on where i can hold a creditor’s meeting?

Yes, the creditors’ meeting must be held in the area of the registered office of the company. For example, a company with a registered office in Dublin 4 cannot hold a creditors meeting in Co. Cork.

Can the company’s accountant/Auditor act as liquidator?

No, this is deemed a conflict of interest and as such cannot occur.

Michael Butler

Butler & Co  
Insolvency Practitioners                                                    
Carrick House
49 Fitzwilliam Square
Dublin. 2.
Ph:   01 – 6610036

Mobile: 086-2556603

Web:    www.butlerandco.ie

Email: michael@butlerandco.ie
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