Quick Solvent Liquidation in NZ
If your company is going into liquidation in NZ, we can help you navigate the correct legal procedure and ensure you reach the best outcome. We have experience in the liquidation process in NZ and work as independent liquidators to the benefit of both the shareholders and creditors.
What You Should Know About Solvent Liquidation
There are several points of difference that you should know about when undergoing solvent liquidation.
- Company directors can sign a certificate of solvency: If you are confident that you can pay off your debts with the liquidation of your company assets, you can sign a certificate of solvency and immediately appoint a liquidator. The risk with this method is that you will be liable should the debts not be paid upon liquidation.
- You can save time on the capital distribution process: During liquidation, creditors will have time to make a claim. However, if you declare a company solvent, the liquidator will be more willing to return capital to the stakeholders quickly.
- There will be no income tax on capital gained from liquidation: Profits distributed from liquidation are exempt from taxation.
It is beneficial to have a formal liquidation rather than merely being removed from the Companies Register as this process will prevent challenges from potential creditors.
Process of Voluntary Liquidation in NZ
The voluntary liquidation process for a solvent company involves:
- Appointment of a liquidator. A shareholder resolution will appoint a liquidator of their choice. The liquidator is then required to give notice to the Companies Office while the directors of the company must also pass a resolution and file it within 20 working days of appointing a liquidator.
- A notice of appointment and a notice to the creditors is published. These notices are published in the New Zealand Gazette and another newspaper with a minimum of ten working days for creditors to claim. The liquidator will deliver their first statutory report to the Companies Office and give copies of this report to the shareholders and any creditors.
- Distribution of assets. Once the time for creditors to claim has passed, the distribution of assets is carried out, and liabilities discharged. The liquidator’s final statutory report is filed with the Companies Office, shareholders and creditors which will complete the liquidation process. Finally, a public notice is published in the New Zealand Gazette for the intention to remove the company from the register.
Why is Don’t Be Limited Cost-Effective?
Our company has no signup fee, and we will provide you with our professional and honest advice when it comes to liquidation. Regardless of your reason for liquidation, our experience and knowledge of the legal system and our integrity and regard for all parties involved will ensure that you receive the best outcome for your business. We work as a reputable independent liquidator who can think outside of the box to ensure that all possibilities are considered for the best overall result. Contact us today for liquidation help in NZ.