Creditors voluntary liquidation is usually initiated by the company’s directors. The first step is for the board of directors to have a board meeting to agree that the Company should be placed into liquidation and that notices should be sent to shareholders and creditors. 

Calling the Creditors Meeting

The 1963 Companies Act states that ten days notice of the meeting must be given to all creditors. The notice sent to creditors, should be accompanied by a general proxy and a special proxy in the prescribed format.

The 1963 Companies Act also provides that the meeting must be advertised at least ten days before the meeting in at least two daily newspapers “circulating in the district where the registered office or principal place of business of the company is situate”.

Agenda for the Creditors Meeting

A typical creditors meeting has three main items of business. These are:

            • To present a Statement of Affairs to the creditors


            • To give the creditors an opportunity to appoint their choice of liquidator.


            • To give creditors the opportunity to appoint a Committee of Inspection.

Statement of Affairs

Under the 1963 Companies Act, the directors of the company are obliged to present a Statement of Affairs. The Statement of Affairs generally shows the book value of the company’s assets together with their realisable value. The Statement of Affairs should also have a list of the company’s creditors and the amount of each claim.

How Can We Help?

We can advise on all the necessary steps to place a company into a creditor’s voluntary liquidation. We can also act as liquidators.
 

For further information please contact Jim Stafford or Tom Murray on 01 661 4066 or jim.stafford@frielstafford.ie or tom.murray@frielstafford.ie