Looking to place your limited partnership into voluntary administration?
In the words of Lao Tzu: “If you do not change direction, you may end up where you are heading”. Voluntary Administration (VA) is a process that can be used as you attempt to rescue your business that might be experiencing financial difficulty. The main goal would be to avert liquidation. The limited partnership (LP) […]
Pitfalls of Growing Too Fast
Pitfalls of Growing Too Fast A factor that I have often come across in my extensive career as an Insolvency Practitioner, is a company recently incorporated which has a successful first year in business, expands dramatically in its second year and comes crashing down soon thereafter. Often, although not always, at the helm of the […]
Workflow efficiency
An efficient workflow improves productivity and eliminates unnecessary tasks and costs. It plays a crucial role for every company. From hiring a new employee, onboarding new clients, signing up to a supplier to following on with after-sale service. All processes needed to be planned to ensure its completeness and efficiency. Here are a few ways […]
What is a Voluntary Administration for?
Voluntary Administration was designed to assist companies seeking options to trade their way out of insolvency.
Uncertain Times
The rise in the OCR has generated a lot of economic commentary, including from some in the insolvency industry known to have a passion for self-promotion. Few commentators, however, pointed out the incongruity of the Reserve Bank rising interest rates to dampen down demand, while the Finance Minister is handing out helicopter-money to over two […]
It’s all in the game
Often Insolvency Practitioners encounter a situation in a shareholder(s) appointment of a liquidator, where it becomes apparent that the liquidation has been manufactured after the director(s)/shareholder(s) have structured the affairs of the company in such a way that assets are often taken over at undervalue by another company controlled by the same director(s)/shareholder(s) leaving various […]
Receivership v Liquidation
Receivership and liquidation are both formal insolvency processes for companies in distress. However, they are not the same and have differing purposes. Commonly, people are confused by the differences and this blog will explore what they are. Receivership Receivers are commonly appointed as a manager overall a company’s property. This includes physical assets (motor […]
Insolvency Practitioners’ Nightmare – “Divorce Wars”
Most creditors would, I suspect, be unaware of issues insolvency practitioners sometimes must deal with such as dissenting shareholders. Often the rift between erstwhile colleagues can turn as bitter as any acrimonious divorce. Intransigent positions are taken as the opposing shareholders won’t settle for less than they feel that they are entitled to. It seemingly […]
Transaction Undervalue
Set out in section 297 of the Companies Act 1993 (“the Act”); a transaction undervalue is a statutory power granted to a Liquidator to recover money where a party receives more value than they provided to the Company in liquidation. 1.1 – Criteria for a Transaction Undervalue Liquidators can only pursue transactions undervalue provided certain […]
Advantages of Liquidation
When a business is no longer able to trade due to financial challenges and the shareholders or directors want to close the business, often they will just let the company lapse and be struck off the register. However, voluntarily placing a company into liquidation can also be a cost-effective way to exit a business. Liquidation […]
