Liquidations are an important final chapter of a company’s life. Shareholders and directors cannot simply walk away once they wish to wind down the operations of a trading company, or even once they have sold the assets of a holding. The desire to close the company, for whatever reason, must be handled carefully and in line with a series of regulations and protocols. Any company director who ignores these legal obligations will be subject to penalties and personal liabilities.
Every liquidation is run by an appointed liquidator who administers the company in this final stage and deals with the consequences arising out of the reasons for its closure.
A company will be wound up generally speaking, for one of two reasons:
- a decision of the shareholders who opt for voluntary winding up; or
- a winding up that is ordered by the courts or creditors because of insolvency.
The complexity of a company liquidation generally mirrors the intricacies of the operation being wound up. If there are creditors involved, the liquidator’s role will become considerably more complex. It becomes even more onerous in a situation where the liabilities are greater than the assets.
How AE Business Advisors Can Help
AE Business Advisors has a team of seasoned liquidators that have taken on some of Malta’s most difficult corporate collapses. Notable mentions include European Insurance Group Limited, Nemea Bank plc, Flower Power Ltd and DPR Investment Ltd.
On a daily basis our team deals with smaller ordinary closures and orderly de-registrations on behalf of clients who will frequently bring a company’s life to an end when its mission has been completed.