Liquidations Insolvency and Restructuring Advice
Liquidations Insolvency and Restructuring advice
Luke O’Malley holds an insolvency practicing certificate from Chartered Accountants Ireland and is entitled to act as an insolvency practitioner in the Republic of Ireland.
Members Voluntary Liquidation
Members voluntary liquidation (solvent liquidation) is a method whereby a solvent company can be wound up and its assets distributed to its shareholders. It is a tax efficient method of making a distribution to the shareholders and any distribution that the shareholder receives over and above the amount subscribed for shares is taxed as a capital gain which is currently a maximum of 33%. Many shareholders are able to avail of retirement relief and in many instances no capital gains tax as a result is payable.
The liquidator once appointed then takes control of the company and ensures that all liabilities of the company are paid. He distributes the surplus of assets to the relevant shareholders. The assets can also be distributed in specie i.e. in kind. This means that freehold property may be transferred to shareholders directly. An advantage of this is that under current legislation no stamp duty is payable. We have acted in a number of cases as the members appointee and have dealt with any of these liquidations in a prompt and efficient manner to the satisfaction of the shareholders.
Creditors Voluntary Liquidations
This is a process used to deal with a company that is insolvent. In general it is the board of directors who agree that the company should be placed in liquidation. There are certain procedures to be followed in regard to the calling of the creditors meeting, agenda for the creditors meeting and the preparation of the statement of affairs. We can assist and advise in all of these matters.
Statement of Affairs
Under the 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 the realisable value. The statement of affairs should also have a list of the company’s creditors and the amount due to each. The statement is prepared to a date close to liquidation date.