Liquidation Accounting Specialists
Russell & Co. are liquidation accounting specialists with over 40 years experience.
- Highly skilled and experienced liquidation firm
- Full suite of liquidation services
- We offer a fixed fee approach
- Ensure compliance with your statutory duties
- Help calculating your Statement of Affairs
- Advice on next steps after liquidation
REQUEST A CALLBACK
RUSSELL & CO. LIQUIDATION ACCOUNTING SPECIALIST
All business owners dread knowing that their enterprise may need to go into liquidation. They can see it as a failure on their part and it can be highly demoralising. Yet, when your business is unable to pay its debts, liquidating is usually your only option. Needless to say, this is a sensitive time for businesses and it’s vital that you have the right help when going into this complex process. You need the aid of a chartered accountant who is highly conversant in Irish laws and statutes pertaining to liquidation. You need a firm who will guide you through each step of the process. A firm that understands and is sensitive to the difficulties encountered by company directors and shareholders in this time of great uncertainty.
You need Russell & Co.
We are a highly skilled and experienced in liquidation accounting, and have been appointed as liquidator to numerous Irish companies in recent years. Partner John Russell holds an Insolvency Practicing Certificate from Chartered Accountants Ireland and can assist in all aspects of corporate insolvency and restructuring. We can guide you through each step of this potentially complicated process in plain speaking, no-nonsense terms and help you as the director and your shareholders to emerge on the other side.
Here we’ll share some of our knowledge and expertise on the subject of liquidation accounting to help you to feel better about taking this daunting but necessary step.
How Russell & Co. can help you?
Liquidation can be an extremely daunting undertaking when you’re going it alone. That is why we offer a full suite of services to help companies through the process in the most painless and stress free way possible. Here are just some of the ways in which we, as liquidation accounting experts, can aid your business…
- We advise on your statutory duties so that your liquidation is carried out completely legally (easier said than done, given the slew of legislative changes over the past decade or so).
- We help you to assemble and calculate your Statement of Affairs in line with the 2014 Companies Act.
- We prepare all statutory documents on your behalf and ensure that they meet Irish legislative standards.
- We provide tax advice in advance so that you know you can liquidate in the most tax-efficient way possible before commencing.
- We can help deal with your suppliers, bankers and employees.
- We can organise, schedule (and if necessary facilitate) all necessary meetings.
- We offer a Fixed Fee approach with no unexpected costs. This is completely comprehensive and includes all costs such as advertising, filing fees, and Solicitor/Commissioner of Oaths. We understand that financial transparency is particularly important at this time which is why we will never leave you with any unexpected costs or extra fees.
What is Liquidation?
Liquidation is the process of winding-down a business and distributing a company’s assets when it is no longer able to pay its debts and function as intended. There are three different types of liquidation;
- Creditors Voluntary Liquidation
- Members Voluntary Liquidation
- Compulsory or Court Liquidation
As skilled and experienced Liquidation Accounting Specialists, we can assist in cases of voluntary liquidation to ensure the best deal for the company and its shareholders. We can even help companies take steps to prevent Compulsory Liquidation. Let’s take a look at each of these, what they entail and how they differ…
Creditors Voluntary Liquidation
A Creditors Voluntary Liquidation (CVL) takes place when an insolvent company decides to go into liquidation of its own volition. This is usually initiated by the company’s board of directors. A board meeting must be held to agree that the company should be put into liquidation. Under The 2014 Companies Act Ten days’ notice of the meeting must be issued to all creditors and shareholders. The meeting must also be advertised in at least two daily newspapers. These publications must be in regular circulation either where your main business premises or other registered office is located.
The company director is also required to present a Statement of Affairs describing the book value and realisable value of the company’s assets. Creditors have the right to question the Statement of Affairs so accuracy and transparency are of paramount importance.
Members Voluntary Liquidation
This form of liquidation occurs when a director retires or a business has simply run its course or met its intended goal. It can also be used to disassemble and liquidate the assets of businesses which are long dormant and serve no real purpose. An MVL allows the company to realise its assets and distribute surplus profits to shareholders in a way that is tax advantageous. A Members Voluntary Liquidation also ensures that all company creditors are paid in full. Funds distributed are subject to capital gains tax rather than income tax and as such, shares will only be taxed at 33%.
An MVL is also a useful way to dispose of dormant companies that no longer have any useful purpose.
The directors need to sign a Declaration of Solvency which states that the company will be able to pay its outstanding debts in full within 12 months. When the liquidation is complete, the company is then dissolved. We can help to ensure that assets are realised at an optimal value to maximise dividends for shareholders.
Compulsory Liquidation takes place following a petition from a creditor, a shareholder or the Director of Corporate Enforcement to issue a “winding up order” to an insolvent company. In this case an Official Liquidator is appointed by the Court with powers to liquidate the company’s assets, investigate its activities and pursue its directors.
Compulsory liquidation should be avoided wherever possible for reasons we’ll get into shortly.
The benefits of voluntary liquidation
We understand that you and other board members may be reticent about the liquidation process. We know that this may seem like a very drastic and final step, yet there are some distinct advantages to voluntary liquidation.
However, voluntary liquidation is far more preferable to compulsory liquidation and can save you from a number of the inherent costs of compulsory liquidation– not least of which is an inevitably costly court appointed liquidator.
Voluntary liquidation also allows you to avoid being struck off by the Companies Office and having to reinstate the company all over again at a later date. This is significantly more costly and involves potential prosecution by the Office of the Director of Corporate Enforcement. This may also result in the loss of limited liability protection, meaning you can be held personally liable for all company debts.
In some cases, we can help a company not to dissolve altogether but merely to restructure. For groups that want to simplify their corporate structure, strategic liquidation can be an effective aspect of the simplification process.
We help you to act early
Nobody relishes the prospect of liquidating the enterprise that they’ve worked long and hard to build. Nonetheless, our qualified insolvency specialists can help to ensure that you grasp the nettle and take control of the situation. A timely liquidation can also reduce your risk of reckless and disadvantageous trading. By acting early, you are able to reduce your risk of compulsory liquidation and can look forward to moving on with your life and your career.
Irish insolvency law is always changing… And so are we!
Not only is liquidation a daunting process, it’s also a legal minefield. Without the right help and guidance your problems can be exacerbated when the liquidation does not go smoothly due to a lack of adherence to Irish insolvency law. With the help of our liquidation accounting specialists, directors can navigate through the perilous maze of legislation and regulations in order to bring their business to a timely end.
Moving on from a liquidation
We tend to think of a liquidation to be an act of complete finality. Yet, for many business owners and company directors, a liquidation is nothing more than the closing of one door and the possible opening of another. There are all too many misconceptions abound concerning the whole liquidation process and what happens to a company’s directors in its aftermath. A liquidation is not a public admission of failure. It is nothing more than the correct and responsible action to take if your company becomes insolvent.
If you are worried that a liquidation may permanently damage your personal and professional reputation or credit, rest assured. There is no automatic effect on a director’s credit rating in the wake of liquidation. Directors may be surprised to learn that they can continue to work or even set up another business in the same industry after the liquidation of their company.
However, if you choose to do this, it is essential that you learn from your past mistakes and make a fresh start stronger and wiser for the experience. Going forward in their entrepreneurial careers, it’s absolutely imperative that directors are properly advised and carry out all future actions with a firm understanding of Irish liquidation law.
Fortunately, Russell & Co. liquidation accounting specialists can help you there, as well.
A suite of services to help you to make the best possible fresh start
After you’ve bounced back in the wake of your liquidation we can provide you with a comprehensive suite of services to ensure that your next operation bears much less risk of going into liquidation. We provide a wide range of business coaching and accountancy services to help you on the path to a fully compliant and profitable future. As well as our insolvency services we also offer;
- Guidance on company formation
- Company audits
- Taxation advice
- Accountancy and bookkeeping services
- Payroll services
- Business secretarial services
All of these are designed to help you to put your best foot forward and reverse your fortunes in business. With the help of Russell & Co. a liquidation can go from being a bitter end to a transition into a bright and profitable new beginning.
Don’t Wait. get in touch today
If your business is currently insolvent, timing is of the essence. Don’t delay, get in touch today to arrange a free consultation with our liquidation accounting specialist team. We have the knowledge, skills and expertise to help ensure that your liquidation is to your benefit rather than your detriment.