Winding Up Option for Company Directors
Is Your Business Being Threatened With Winding Up Petition?
Do you owe money to the VAT man, Tax man or other creditors & Being Threatened With A Winding Up Petition?
A winding up petition is a very serious court lead legal procedure to close your company down, yes close it down or the phrase winding up states it will wind the company’s affairs up and close the business and sell off all the assets owned by the company in order to pay off the creditor petitioning.
Once the winding up petition has been issued against your company you are left with minimal choices compared to when you were being threatened by a petition. When seeking advice make sure you find a good Insolvency Auditor to help you through the legal maze of insolvency process. You see when you have a threat hanging over your company and no action has been taken apart from the threatening letter or a statutory demand you can do a number of things:
- Pay the debts off in full
- Ask for a payment plan
- Arrange for a CVA which is a Company Voluntary Arrangement to repay the total debts of the company over a number of years subject to 75% of your creditors agreeing to it
- Depending on the size of the company and the viability of the business you can arrange a Pre-Pack Administration which involved setting up a new company to buy the assets of the old company and continuing in business without any of the debts of the old company.
- Liquidate your company by means of a voluntary liquidation and buy any assets back from the liquidator and set up a new company and carry on business without the worry of the creditors from your old company.
- A straight forward Voluntary Company liquidation, this happens when the company is dead in the water and has no future and the directors just want to minimize their personal liabilities and that of the company’s liabilities and just walk away after the liquidation.
- Last of all is to do nothing and wait for the Winding Up Petition to arrive which then turns into a Winding Up Order to close the company down and hand the rains over to the court appointed liquidator or even the Official Receivers Office
The above is just an outline of the winding up option to you as a company director subject to the status of your company. A good Insolvency Auditor would ask you first of all where would you like to be in 6-12 months time if you had the choice and then plan around that what your options are to survive the insolvency and to save your business be it in its current form or in the form of a Phoenix rising from the asses of the old company. You must not ignore any threats made against your company regarding a Winding Up Petition, speak with an Insolvency Auditor before it is too late.