Company liquidation services - Sharjah - UAE Auditors
- Category: Consultancy services
- Published: Wednesday, 01 October 2014 10:36
- Written by Abdelhamid M. (ACPA)
Company Liquidation is the process of finalising its affairs, which will involve the sale of assets, investigation of past actions, the equitable distribution of the assets of a company amongst its creditors, and thereafter to its shareholders., Also it can be defined as the process of selling an insolvent business assets and dividing them up between creditors to pay off debts. It can either be voluntary or compulsory.
Voluntary liquidation is initiated for a number of reasons. Sometimes a company may elect to enter liquidation while they are still solvent and their assets are still worth more than their liabilities but they believe that the company is past the point of no return and will no longer be financially viable. More commonly however it happens when the business is insolvent and directors decide to put the business into liquidation.
A compulsory liquidation occurs when a court makes an order to wind up the company. This can result in a petition from creditors after they have sent the company a statutory demand and the company is unable or unwilling to pay. A court-appointed receiver is charged with analysing the company’s assets and determining the best way to distribute them between creditors.
What create demand for company liquidation services?
There are several reasons why liquidation is commonly chosen as a procedure to end the life of a company. It:
- ensures that the assets of a company are distributed equitably among creditors
- reduces the cost borne by the community in having insolvent companies continue to trade
- enables a dormant company to be deregistered
- facilitates an independent investigation into the affairs of the company and increases the potential for redress for creditors against those who breached their obligations or the law.
Advantages of Liquidation:
If you are considering liquidation, it is important that you are aware of the pros and cons, and that the process is the best solution for your current situation. The advantages of liquidation are:
- It happens to the company, not the individuals within the company.
- Management of the liquidation is passed onto the appointed liquidator, relieving some of the stress that a director may incur as a result of the process.
- Once the company is liquidated, creditors can no longer pursue directors for payment.
- Unsecured debts are written off.
- As soon as the company closes, all legal action against the company is halted.
How we can support you:
- As liquidators we are qualified practitioners and are responsible to collect the company’s assets and distribute them to the company’s creditors, and in the event of a surplus, to the owners.
- Also we are required to notify the Gazette (the official newspaper of record for the UAE – it records official, regulatory and legal information) and Registrar of their appointment. If the liquidation is voluntary, notice to the local newspaper is also standard practice.
- Additionally, in the case of a voluntary or compulsory liquidation, we will have the power to continue the running of the business (if feasible) to ensure a beneficial winding up of the company.
For any inquiries you can chat with us using WhatsApp or Telegram or fill the following form and we will get back to you as soon as possible:
Mobile: +971- 050-7948028