What happens when a company goes into liquidation?
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The company, if it has not already ceased to trade, will do so at the time of the Liquidators appointment. In addition to this the Directors powers will cease. Effectively the IP who has now become known as the Liquidator will take over from the directors and deal with the company’s affairs.
The Liquidator will deal with all creditor issues and will seek to realise the assets of the company in an orderly fashion. The director will no longer need to speak to the creditors or run the company but may be required to assist the Liquidator if he believes that this will be beneficial.