Liquidation is a formal process to wind up a company's affairs. This guide explains how the liquidation process works in Ireland and what you can expect at each stage.
What Happens During Liquidation?
When a company enters liquidation, a licensed liquidator takes control. Their role is to:
Collect and protect company assets
Sell assets to generate cash
Investigate the company's affairs
Adjudicate creditor claims
Distribute funds by legal priority
Report to CRO and authorities
The Liquidation Timeline
Week 1-2
Initiation
- Directors convene board meeting
- For MVL: Declaration of Solvency signed
- Shareholders meeting convened
- Resolution to wind up passed
- Liquidator appointed
Week 2-4
Taking Control
- Liquidator notifies CRO, Revenue, and creditors
- Bank accounts frozen or transferred to liquidator
- Employees informed (if any remaining)
- Business operations cease
Month 1-3
Asset Realisation
- Assets valued and sold
- Debtors pursued for payment
- Contracts terminated
- Property disposed of
Month 2-6
Claims and Distribution
- Creditor claims deadline set
- Claims verified and adjudicated
- Distributions made to creditors
- For MVL: final distributions to shareholders
Final
Dissolution
- Final accounts prepared
- Final meeting held
- Returns filed with CRO
- Company dissolved 3 months after final return
Role of the Liquidator
The liquidator has extensive powers including:
Carrying on business if necessary for beneficial winding up
Selling company property
Bringing or defending legal proceedings
Investigating director conduct
Making distributions to creditors and shareholders
Your Obligations During Liquidation
As a director, you must:
- • Cooperate fully with the liquidator
- • Deliver up all company property, books, and records
- • Attend meetings when required
- • Provide information about company affairs
- • Not dispose of company property without consent
Pro Tip
Choose your liquidator carefully. While costs matter, experience with your industry and company size is important. A good liquidator can maximise asset realisations and minimise the timeline, ultimately saving money and reducing stress.
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