The liquidation process

This process can be different depending on the circumstances, e.g. whether the company is trading, or depending on what assets it has.

  1. Company is unable to pay its creditors

    The company is unable to pay its creditors and the company or the shareholders have it placed into liquidation.

  2. A liquidator is appointed

  3. The liquidator notifies the Companies Office, and advertises the appointment.

  4. Creditors’ meeting

    A creditors’ meeting may be held to appoint a replacement liquidator.

  5. The administration of the liquidation starts.

    This may include;

    • closing the business
    • identifying and selling the company assets
    • contacting and receiving claims from the creditors
    • sending progress reports to the creditors
    • investigating possible offences or unusual transactions
    • making payments to creditors (dividends).
  6. Completion

    The final report is sent to creditors and the Companies Office is notified. The company is then removed from the Companies Office Register.

Liquidation life-cycle

[Diagram] Liquidation life-cycle

Note: This is indicative only - actual liquidations may differ depending on circumstances.

1 Made on application by creditor / director / shareholder / administrator / Register.

2 Passed by Shareholders, or Board on occurrence of event specified in constitution.

3 Company may also be in Receivership or Voluntary Administration.

4 Liquidation may be terminated on application by director / shareholder / creditor, etc.