Corporate Recovery & Insolvency
Our Corporate Restructuring & Insolvency Services
- Business and Asset/Property Reviews
- Creditors Voluntary Liquidations ("CVL")
- Court Liquidations
- Members Voluntary Liquidations ("MVL")
- Turnaround & Restructuring
Creditors Voluntary Liquidation
A Creditors Voluntary Liquidation is the most common liquidation process in Ireland. It is a process used to deal with a Company that is insolvent. Creditors Voluntary Liquidation is usually initiated by the Company's directors and follow the procedures as set out in the Companies Act 2014. The first step is for the board of directors to have a board meeting to agree that the Company should be placed into liquidation and that notices should be sent to shareholders and creditors.
Members Voluntary Liquidation
A Members Voluntary Liquidation winds up solvent companies and distributes surplus funds back to shareholders. When a company has completed its purpose, or the directors of a company decide to retire, a Tax efficient way of releasing the surplus which may have accumulated is to place the company into a Members Voluntary Liquidation. The Tax advantage for shareholders is that a capital gain received on their shares will only be taxed at 33%, whereas if the surplus monies were taken out as salary, then these monies may be taxed at a much higher marginal tax rate. To place a company into a Members Voluntary Liquidation, the directors must follow a Summary Approval Procedure as set out in the Companies Act 2014 which requires the directors must complete a Declaration. The Declaration summarises the company's assets and liabilities and the directors state that the company will be able to pay all of its debts in full within 12 months of the commencement of the Liquidation. There may be serious consequences for the directors if they swear a Declaration which is inaccurate.
A High Court Liquidation is generally initiated by creditors seeking payment from insolvent companies
Corporate Recovery & Restructuring
As a specialist Corporate Recovery practice we have developed a wide range of analytical tools and techniques to assist Companies which may be in temporary financial difficulty. In general terms, each Corporate Recovery assignment may be broken down into four steps as follows:
- Identifying the problems
- Assessment of business viability
- Devising a recovery strategy
- Monitoring a recovery strategy implementation
Our dedicated restructuring team works with stakeholders to restructure businesses that are experiencing financial difficulties, and seeks to rebuild corporate performance and restore stakeholder confidence
Financial investigations can include a range of assignments during which the forensic accountant is engaged to find out why financial results or behaviour has deviated from the expected outcome and to quantify the impact of such results.