If the directors and shareholders lead a liquidation process this is known as a Creditors Voluntary Liquidation (CVL). It takes approximately 3 weeks from engagement to the eventual appointment of the liquidator. During this period the directors retain control of the company but are assisted by the proposed liquidator to ensure that they comply with both their duties and the statutory requirements of the Insolvency and Companies Act.
Liquidating a company
Once appointed the liquidator takes over responsibility for the company and the director owes only a duty to assist the liquidator where required. The main functions of a liquidator are to perform his statutory duties of investigation and to realise the assets of the company. The length of time a liquidator remains in office varies depending upon the complexity of each particular case. However, in every case the liquidator is required to report to creditors outlining the progress made on an annual basis from his appointment date. Once he has completed his investigations and realised the assets of the company a liquidator will seek his release from office and the company will be dissolved approximately 3 months from the date of his release.
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