Liquidating a company in ireland
For example, if the company continued to trade and make further losses after becoming insolvent, the directors can be made personally liable for the debts.
Occasionally, when a winding up petition is presented to court, the judge will deem it too risky for the company to continue trading.
Company officers, both current and former, have a duty to co-operate with the official receiver and private liquidators.
In more complex cases, they will usually appoint a private sector insolvency practitioner, usually an accountant or solicitor, to complete the liquidation.‘Without Notice’ means that it is only the Official Receiver who is aware of the situation, and this is usually due to a fear that company assets may disappear in some way, if the company finds out about it, or that it is demonstrably in the public interest.In some cases, the company’s creditors will choose to appoint a creditors’ committee to protect and promote their best interests.(2) For the purposes of this section, a name is a prohibited name in relation tosuch a person if - (a) it is a name by which the liquidating company was known at any time in that period of 12 months, or(b) it is a name which is so similar to a name falling within paragraph (a) as to suggest an association with that company (3) Except with leave of the court or in such circumstances as may be prescribed, a person to whom this section applies shall not at any time in the period of 5 years beginning with the day on which the liquidating company went into liquidation - (a) be a director of any other company that is known by a prohibited name, or (b) in any way, whether directly or indirectly, be concerned or take part in the promotion, formation or management of any such company, or (c) in any way, whether directly or indirectly, be concerned or take part in the carrying on of a business carried on (otherwise than by a company) under a prohibited name.(4) If a person acts in contravention of this section, he is liable to imprisonment or a fine, or both.
The liquidator must then report to the committee on the progress of the liquidation and account for any costs and expenses. Their payment can be in the form of a pre-agreed fixed sum, an hourly rate, or as a percentage of the assets they realise.