How can a company be liquidated in Ireland?
In case a company in Ireland cannot continue its business
, the procedure of liquidation
must be initiated. There are three ways an Irish company can be liquidated
according to the Companies act:
- the members’ voluntary liquidation;
- creditors’ voluntary liquidation;
- compulsory liquidation.
Our Irish law firm
has consultants with an extensive experience in company liquidation cases,
who are ready to provide you with legal assistance
no matter the chosen company liquidation method
What are the steps for company liquidation in Ireland?
If the company has funds to pay its debts, the procedure of members’ voluntary liquidation can be instituted and begins with a general meeting of the shareholders. The main objectives of this meeting are: starting the process of liquidation and the appointment of a liquidator. The company’s directors must declare that all the claims can be covered in maximum one year. This is the so called Declaration of Solvency.
The appointment liquidator has all the powers of the former management and can take only the decisions necessary to carry the liquidation process. Its main target is to cover all the claims of the creditors in less than a year and only after that, distribute the remaining assets to the debtors.
The creditors’ voluntary company liquidation is the result of the company general meeting and the creditors’ general meeting. These are due to the observation of the debts encountered by the company. After taking the decision, a list with the company’s assets is drafted and presented in front of the company’s director during a second meeting. A liquidator is appointed in order to take all the necessary decisions in order to take all the necessary actions related to the liquidation. The creditors can also appoint an alternative liquidator and a committee of five inspectors. At its turn, the company can appoint another three inspectors in addition to those selected by the creditors. The inspectors have the power to decide if the liquidator must continue the company’s activity and the assigned remuneration for him.
The compulsory liquidation
is decided by the High Court of Ireland
based on a petition from the company’s creditors. The Court is also appointing the liquidator
which has the role of checking the company’s assets, use it if necessary in order to cover the claims received from the creditors and divide the remaining assets to the shareholders.
is under the Court’s strict control, while the liquidator
appointed in the voluntary company liquidation in Ireland
has more freedom of action.
For more details about each type of company liquidation
, do not hesitate to contact our team of Irish lawyers.
How long does it take to liquidate a company in Ireland?
The duration of the company liquidation procedure in Ireland
can take from several months to several years depending on the size of the company, the number of employees, the nature of the claims which must be settled. Our attorneys in Ireland
are specialized in these types of situations and can help you with the process of closing your company