A Well Timed and Successful Members Voluntary Liquidation of a Timber Company
As Licensed Insolvency Practitioners, we don’t always deal with insolvency and the main insolvency procedures that flow from it, such as administrations, company voluntary arrangements and insolvent liquidations. This testimonial is from a client who approached us to handle a solvent liquidation of their company – a members voluntary liquidation – so that they could wind up their business and realise their investment.
The Background to this Solvent Liquidation
The Company involved, Jonathan Plumridge (Timber) Limited, was incorporated in 1954 by our client’s parents, and had traded successfully. This successful trading continued after our client took over the running of the Company in the late 1990s for a further 20 years or so, until the client – a husband and wife team – decided they wished to withdraw from the Company and cash-in on their investment.
The Company was solvent, so the answer, of course, was a members voluntary liquidation.
This is What Our Client Said About Our Work
“Dear Sirs,
I write, summarising the background and to express our thanks.
Following the death of my parents some twenty years ago, my wife and I took over the running of the Company, Jonathan Plumridge (Timber)Ltd., as an investment vehicle following its long previous trading history. This proved very successful but in 2016 we decided to wind up the business and cash in our investment.
Antony Batty & Co. were recommended and subsequently appointed to undertake the steps necessary to achieve a solvent members voluntary liquidation. Hugh Jesseman was appointed to act in this matter, commencing with an explanation of the steps and procedures required and then commencing to undertake these on our behalf. This transpired to have been a good appointment and a happy link up.
The whole has now been brought to a tidy and satisfactory conclusion with the Company having been dissolved on 3 August 2017. We are pleased with having instituted a well timed withdrawal and that we were taken through the whole in a most capable manner. Our thanks and willing recommendation.”
Robert and Nealia Plumridge
When can a Members Voluntary Liquidation be Used?
A liquidation is when a company’s affairs are formally wound up. Trading ceases, the assets are realised and the liabilities are quantified. A solvent liquidation occurs when the value of the assets are sufficient to pay off all of the company’s debts, any interest on those debts and all other costs within a period of 12 months from the appointment of the liquidator.
There are many reasons why a solvent liquidation is chosen by a client. It might be that a company has fulfilled its purpose and is no longer needed. It might be for tax reasons, disagreements over its future course amongst the directors or even due to a major contract loss leading to a desire amongst directors to ‘get out whilst they still can. In this case it was simply because the directors wished to realise their investment and move on to other things.
We were appointed in September 2016, and the sum left over after everything was paid off delivered the return on their investment that our client wanted. The Company was finally dissolved on 3rd August 2017, and the client was pleased enough with our work to send us the above testimonial, for which we are most grateful.
