Liquidating business nz

02-Jul-2020 08:37 by 7 Comments

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Compulsory liquidation of a company requires obtaining a court order.

Liquidations are also classified according to whether the company is solvent or insolvent.

If the company is insolvent, this means it is unable to pay its debts as they fall due.

The liquidator, who is usually a professional accountant, terminates company activities, collects and sells the assets and distributes the resulting funds to creditors in accordance with statutory priorities.

Generally this is the worst possible outcome for shareholders.

This process starts with an application to the court alleging that one or more of the required grounds exist.

The application may be brought by the company or a majority of its directors, or by the Registrar of Companies, or by a creditor.There are a number of factors that the court will take into account when deciding whether or not to make a compulsory liquidation order.The court has a discretion as to whether or not to make the order.FURTHER READING Company Liquidation explained by the NZ Companies Office HELP PLEASE de Listed and Investo Gain are largely the result of voluntary effort.We welcome input and updates from investors, company officers, insolvency practitioners, regulatory bodies, registries and others to [email protected] voluntary liquidation may also by commenced by the board of directors if an event specified in the company's constitution has occurred.

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