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Business Liquidation Service

Updated:2018-1-19 17:42:47    Source:www.tannet-group.comViews:408

Liquidation is the process by which a company (or part of a company) is brought to an end, and the assets and property of the company are redistributed. Liquidation is also sometimes referred to as winding-up or dissolution, although dissolution technically refers to the last stage of liquidation. The process of liquidation also arises when customs, an authority or agency in a country responsible for collecting and safeguarding customs duties, determines the final computation or ascertainment of the duties or drawback accruing on an entry.

Types of Company Liquidation
Generally speaking, there are two types of liquidation:
(1) Compulsory liquidation
The parties who are entitled by law to petition for the compulsory liquidation of a company vary from jurisdiction to jurisdiction, but generally, a petition may be lodged with the court for the compulsory liquidation of a company by:
The company itself;
Any creditor who establishes a prima facie case;
Contributories: Those shareholders who may be required to contribute to the company's assets on liquidation;
The Secretary of State (or equivalent);
The Official Receiver.

(2) Voluntary liquidation
Voluntary liquidation occurs when the members of a company resolve to voluntarily wind up its affairs and dissolve. Voluntary liquidation begins when the company passes the resolution, and the company will generally cease to carry on business at that time (if it has not done so already).

Advantages of Company Liquidation
Since the liquidation of a company ultimately means the end of the business, as all of the assets are sold to repay as many debts as possible, it would seem that there would be limited advantages in this situation. However, many company directors choose to voluntarily liquidate in a process known as creditors’ voluntary liquidation (CVL), and this route offers a number of advantages in comparison to continuing to trade insolvently. The advantages are as follows:

Protection from Wrongful Trading Accusations;
Protection from Personal Liabilities;
Avoidance of Court Procedures;
The Consideration of Alternate Options.

Contact Us
If you have further inquires, please do not hesitate to contact Tannet at anytime, anywhere by simply visiting Tannet’s website www.tannet-group.net, or calling Hong Kong hotline at 852-27826888 or China hotline at 86-755-82143422, or emailing to tannet-solution@hotmail.com. You are also welcome to visit our office situated in 16/F, Taiyangdao Bldg 2020, Dongmen Rd South, Luohu, Shenzhen, China.

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