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Hi Mike, I was wondering if you could help me understand the timeline for creditor’s voluntary liquidation. Below is how I understand it, could you please confirm if it is correct?
Members meeting —> within 7 days notice, Creditors meeting —->3 days, decision on the nomination of the liquidators to be delivered to the registart —> within 14 days the resolution to wind up the company to be delivered to the Registrar.
Just been looking at the Insolvency Act 1986 (www.legislation.gov.uk/ukpga/1986/45) and, in particular, Chapter IV Sections 97 -106 inclusive
Also checked out an eminently readable summary on http://www.informdirect.co.uk/business-management/creditors-voluntary-liquidation-cvl/
In summary, 14 days notice of a general meeting of members to receive and, if thought fit, to pass a special resolution.
At that meeting, the directors must produce a Statement of Affairs made up to a date no later than 5 weeks before the date of the meeting
Members nominate a liquidator (if the resolution is passed!)
Typically on the same day, but no later than 7 days after the members’ meeting, a meeting of creditors is held telling them of the members’ resolution to put the company into voluntary liquidation (they must have guessed that this was going to happen – why else would they be summoned to a creditors’ meeting!). The statement of affairs is made available to the creditors at that meeting
Creditors may choose to accept the members’ nominee liquidator or ignore the members’ choice and appoint their own liquidator
– advertisement in Gazette within 14 days of passing the special resolution
– copy special resolution to Registrar within 15 days
– copy statement of affairs to Registrar within 15 days