As the end of the tax year fast approaches, here are the top 5 questions we are asked by Directors and Shareholders looking to place their companies into Members’ Voluntary Liquidation.
1. When do I get my money?
If we have cleared funds on the day of liquidation, we can look to pay an interim distribution to shareholders that same day, should this be beneficial for their personal tax position.
2. How long will the Liquidation take?
Creditors must be paid within the first twelve months and, subject to realisation of assets and tax clearance, we can close off the liquidation within the year.
3. When do my responsibilities as a director cease?
Other than assisting the Liquidator, your duties are likely to cease on liquidation.
4. Can I retain company assets?
Yes, it is possible for assets to be distributed in specie, but there will be tax implications.
5. Can a company be placed in liquidation when there are assets still to be realised?
Yes, the key thing is to ensure that there will be sufficient realisations to settle any creditors within the 12 month period, otherwise the liquidation can commence at any time.
What if I have more questions?
We’re at the end of the phone if you need to discuss any aspect of the liquidation process.