Creditors Voluntary Liquidation

The majority (90%) of liquidation cases in Ireland are Creditors Voluntary Liquidations. In a Creditors’ Voluntary Liquidation (CVL), the insolvent company voluntarily decides to go into liquidation. The process is usually initiated by the company's directors calling a board meeting to agree that the company should be placed in liquidation.

If a company intends to liquidate a creditors meeting must be called and at least 10 days notice must be given to all creditors. The creditors meeting must also be advertised in two daily newspapers circulating in the area where either the registered office or the principal place of business is situated at least 10 days before the meeting. At the creditors meeting the presiding director usually reads a short statement setting out the reasons why the company is being placed into liquidation and presents a Statement of Affairs to the creditors.

The Statement of Affairs shows the book value of the company's assets together with an estimate of their realisable value and a list of creditors and the amount of their claims. The creditors may then quiz the presiding director on the Statement of Affairs or why the company is going into liquidation. Finally the creditors may appoint a liquidator other than that appointed by the company and nominate members to the Committee of Inspection.

 Irish Liquidations offer low cost creditors voluntary liquidations, call 01 6472105 for a free consultation.