If you think that there is no better way than to take on a business liquidation of your company, then you have to be very careful about going about this option. Though it is not a great idea, obviously, to close down a business, liquidating your company might be the only necessary option to make things work better for the stakeholders. One of the plenty of questions surrounding this decision is how long will it take to happen? Since there are plenty of variables involved and there is no specific time-frame for it without enough information available.
However, once sufficient information is given, the liquidator may act immediately and your company can be liquidated in a span of two to three weeks. This time frame occurs when the business liquidation of the company is considered voluntary or there has been a clear decision to liquidate and the majority of the shareholders said yes to the notice. This can take place as quick as one week only as long as there is a proper statutory notice period provided to the creditors. On the contrary, the compulsory type of liquidation usually happens much longer.
The first step of compulsory business liquidation starts with a statutory demand sent by a creditor. Once this happens, the company has about 21 days to settle the payment or 18 days to set it aside. The next step is the winding up of petition hearing. Right after the issuance of the demand, the creditor needs to accomplish the application for a winding up petition hearing, which may take about 2 weeks. This can be shorter or longer, depending on how the court responds to the case.
The last step usually is the winding up hearing itself wherein a 14-day written notice is furnished to your company for it. So, basically, that’s how a liquidation of company happens in three steps. And once the right liquidator has been appointed for the role, their responsibility is to act as the third-party to supervise everything about your business liquidation.
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