A simple guide for Directors who want to liquidate their company but don't want to use and business consultant to help them avoid problems

1. How to Liquidate
without the hassle

2. Why is it important?
Last year in the UK more
than 1,500 Directors
were prosecuted.

3. Why is it important?
That's almost 1 every
working business
hour.
By following some
simple rules you
don't need to be
one of them.

4. Why is it important?
In our experience these
mistakes are made In the
last weeks before
Liquidation
Most can be avoided.

5. Why is it important
As a Director of an
Insolvent company
(And you are Insolvent if
you can't pay your bills
on time)

6. Why is it important
Your job description
has changed
You are now there to
look after the interests
of the creditors of the
company...
Not the
shareholders...

7. What you will learn
● Dealing with people you owe money to
● Taking more debt
● Handling assets

8. Please remember these are general guidelines
and for a plan tailored to your business you need a
proper Voluntary Liquidation consultation at
Liquidation Services (did I mention it's free)
Disclaimer

9. Dealing with Creditors
Creditors are who you owe money to. It is
important to be careful about how you deal with
them just before you Liquidate.

10. Dealing with Creditors
As a general rule –
pay no one...
...not even the tax
man...
...that would be
showing preference to
one creditor over
others..

11. Dealing with Creditors
If you have to pay
anyone it should be
with a really good
reason...
If you do you should
pay everyone
proportionate to what
they are owed

12. Taking on more debt
This causes Directors more problems than
anything else...

13. Taking on more debt
If you can't pay what
you already owe.
How are you going
to pay the new
debt?
You can end up being
made personally
liable for some of the
debt in this situation.

14. Taking on more debt
If you do need more
stock, maybe to
complete an
outstanding contract
It should be paid for
in advance

15. Taking on more debt
But you should only
ever pay out money if
it will result in an
improvement in the
companies financial
position.

16. Handling your assets
If your business is lucky enough to have assets
then these should be sold to help creditors.

17. Handling Assets
There are different
types of assets.
● Your stock
(floating).
● There are assets
you use to help
you run the
business (fixed).

18. Handling Assets
As a rough guide...
If you sell apples
You can continue to
sell the apples
But not the apple cart

19. Handling Assets
You can sell fixed
assets before you
instruct...
...even to another
company that you're
involved in.
This should be
done at a 'market'
price.

20. Handling Assets
Which usually means
getting them valued
to see what they are
worth.
Any proceeds from
the sale of assets
should be kept safe
for the creditors in
Liquidation.

21. Summary
● If you sell assets make sure it's for a fair price and
keep the money safe
● Don't take on any more debt
If in doubt...
● If you must pay creditors do it proportionate to their
debt and pay all creditors

22. Get Advice
Our advice is always
● Professional
● Free
● Strictly confidential
Visit Liquidation Services