Liquidation and restoration of foreign companies

The directors of the company decide to voluntarily liquidate the business. To do this, the business must be solvent.

A licensed bankruptcy trustee is appointed to oversee the liquidation.

A declaration of solvency is sent to the Registration Chamber and a resolution for liquidation is agreed by the directors together with the trustee in insolvency.

Informing creditors about the forthcoming liquidation.

Going through the liquidation procedure. Employees must be informed and all assets must be sold off.

Profits from sales go to pay creditors, with the remaining profits distributed to shareholders.

The company is removed from the register of the Registration Chamber and ceases to exist.

The directors realize the insolvency of the company and contact an insolvency practitioner.

If the business cannot be restored/restructured, the trustee in bankruptcy offers creditors a voluntary liquidation.

The bankruptcy trustee draws up a resolution on liquidation, which must be passed by the shareholders in a vote.

The bankruptcy trustee notifies creditors of the company's insolvency and impending liquidation. Creditors may object to the decision or propose their own choice of bankruptcy trustee.

After the vote, the Registration Chamber, the Insolvency Service and the public are informed of the liquidation and the process of winding up the business begins.

The insolvency administrator sells the assets of the company in order to raise funds. Employees must be informed and any proceeds from the sale of assets distributed to creditors.

The insolvency practitioner investigates the behavior of the company's directors and submits his findings to the Insolvency Service. If the directors have acted against the interests of the company, they may be disqualified from serving as a director in the future and held liable for certain debts of the company.

The company is removed from the register of the Registration Chamber and ceases to exist.

Creditors repeatedly and unsuccessfully try to recover the money owed to them by the company. Then they decide to forcefully liquidate the company to recover the funds.

Creditors issue a statutory demand for payment.

If the claim is not paid, creditors file a petition for liquidation, which must be approved through the court.

If the liquidation petition is approved, it is published and the appointed trustee in insolvency will liquidate the company. However, it is possible to negotiate with creditors before the liquidation petition is published.

The courts approve a liquidation order if they believe that creditors have the right to liquidate the company. The assets of the company are sold and the funds are distributed. The company is removed from the register of the Registration Chamber and ceases to exist.

Insolvency practitioners overseeing the liquidation process investigate the directors' actions in relation to the company's insolvency. If offenses are found, the Insolvency Service may disqualify directors or take other appropriate action.