Creditors Liquidation

Creditors Liquidation/winding up

In a creditors' winding up the company is obliged to summon a meeting of the creditors. The creditors must receive at least ten days notice and their meeting must be held on the same day or the day after the meeting of the members at which the resolution for voluntary winding up is to be proposed.

 

Identifying if your company is Insolvent

A company is deemed insolvent when it is acutely obvious that it is unable to pay its debts as they fall due. If you are unsure if your company is insolvent, then ask yourself these questions;

1)      Is the company up to date with all Revenue returns and liabilities?

2)      Is the company up to date at the Companies Registration Office?

3)      Can I pay my creditors as they become due?

4)      Has the bank withdrawn facilities?

5)      Have customer cancelled outstanding order?

 

If you answer yes to some, or all of the above questions then you may need to speak with the company’s accountant or other financial advisor establish the current situation of your business. Company Directors must take action quickly, otherwise they may expose themselves to be personally liable for the company's debts, if it can proven that the directors continued to trade during a period when they knew, or should have known that the company was insolvent.

Banner Inner  Thumbnail1
© 2018 TD Fitzpatrick Certified Public Accountants