(In practice, the Ministry does not keep the books of accounts.Instead, it asks the liquidator to keep the books and notify the Registrar of such fact by letter.)The liquidation process takes approximately one to two years to complete, depending on the number of years the company had been in operation and whether its books were properly maintained and tax returns filed as required by law. Chaninat & Leeds, also helped to develop materials for this website.A creditors’ voluntary liquidation (CVL) is a process designed to allow an insolvent company to close voluntarily.The decision to liquidate is made by a board resolution, but instigated by the director(s).
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Accountants or solicitors can provide further information about options for insolvent companies. The assets are collected and sold for the benefit of the company’s creditors. In that case the general meeting will appoint the liquidator(s).
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