What it is
Liquidation is the process of dividing up an organization’s assets among creditors and shareholders when it cannot pay its due obligations.
During the liquidation process, all the organization’s assets, properties, and holdings are sold, and with the income, the insolvent company repays creditors.
There are two types of liquidation: voluntary and compulsory. Both types end with the same result, which is the dissolution of the company.
How it affects your business
Voluntary liquidation:
A solvent company is dissolved through a members’ agreement. Therefore, the company ceases to do business and its debts are all paid.
Compulsory liquidation:
An insolvent company is liquidated by the court or by a creditors’ involuntary/compulsory liquidation. In this case, debt might not be all paid back to creditors and shareholders.
Your business will be mainly affected if your customers go into liquidation because of insolvency.
Why XB4
Through these tough times, XB4 will stand by your company, offering you the necessary advice and helping with everything you might need. Our services include:
- Advising and offering support on the overall liquidation process in accordance with laws and regulations
- Helping with the documentation process
- Preparing the accounts and the required closing financial statements
- Conducting an evaluation of assets, liabilities, properties, net worth, or partners’/shareholders’ accounts
- Providing any required assurance
- Presenting you, and working with a legal advisor, court, or any other third party
- Supporting you on obtaining any required clearance(s)
