TBDA was approached by one Shareholder to provide advice as to the company’s financial position, and the options available. It was agreed that the company was solvent, and that, in the absence of any other workable agreement, the Shareholders could consent to the company being wound up.
Beverley Budsworth was nominated as Liquidator and negotiated with all parties as to the proposed Members Voluntary Liquidation. It was agreed that this would be the most appropriate strategy, and allow a Liquidator to deal with the company’s assets and liabilities in a fair and compliant way.
It was resolved the Board would swear a Statutory Declaration of Solvency, which would enable the Shareholders’ to pass the necessary resolutions. TBDA assisted with the process and it was formally resolved that Beverley Budsworth should be appointed as Liquidator.
APPROVED MEMBERS VOLUNTARY LIQUIDATION SOLUTION
Significant funds have been received into the liquidation, which remains ongoing. It is estimated that the Shareholders’ will receive distributions of capital in accordance with their allotted shares in due course.
Careful consideration must be given to all options available to a financially distressed business.