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Dissolution is an effective method of closing a company. It is cost-effective, well-structured, and relatively easy to implement. However, it is a method only available to solvent companies, meaning all debts and liabilities must be paid before a company goes into dissolution. Directors who attempt to dissolve an insolvent company (i.e. one with debts) will…

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Managing an insolvent company is a difficult task, with the usual stressors of running a company being accentuated by creditor pressure and, in some cases, the looming threat of legal action. If the situation is not handled, this potential threat can become active, with an insolvent company’s creditors filing a winding-up petition, and the courts…

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Plenty of companies are founded by two people sharing the same vision for a new and innovative business venture. They pool their resources, devote their time in equal measure, and as such, hold an equal share in the company. While this is typically done in good faith, with both individuals tacitly acknowledging the other’s value…

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Running a company on the brink of insolvency is a stressful and difficult task, to say the least. It requires walking a financial tightrope, carefully balancing a company’s income and outgoings. It is a task that can be made even more difficult if the attention of the company’s directors is split in too many directions.…

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Liquidation marks the natural end for many companies. It isn’t necessarily a negative option though. The liquidation process can be used for successful, solvent companies which are liquidated because their directors want to close them down and move on to other ventures or retire. For these situations, the process used is a Members’ Voluntary Liquidation…

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