Here, Brent Norling, Director of Norling Law and Damien Grant, Director of Waterstone Insolvency discuss all things Phoenix Companies.
Old companies are often burned and new companies often rise from the ashes with renewed youth and viability.
We discuss the basics, such as:
- What makes a company a “phoenix company”?
- What isn’t a phoenix company?
- What are the consequences if a director gets it wrong and is prosecuted?
- How to successfully create a phoenix company without breaching the Legislation resulting in a possible prosecution.
We also discuss why companies may choose to create a phoenix company. Because there are very legitimate reasons why a director may look at this option as a viable option.
We often see people creating phoenix companies in breach of the Legislation and the consequences can be onerous.
As always, if you have any questions or need any assistance, we offer a free 30-minute legal consultation. You can book directly into our calendar here:
Here is a #TopTip for business owners who want to improve their business.
It is something that I have been doing for a while.
It is important to do and to do regularly to keep the business moving forward.
What is your top business tip?
So, I am in an absolute island paradise and I am reflecting on a common story I hear back home from our clients.
This is a message to debtors.
Debtors, if you do this, you are going to motivate your creditors to sue you.
You are going to motivate them to spend money on Lawyers when they were otherwise sitting on their hands in frustration.
Because let’s be fair, many of the debtors we deal with owe money to multiple entities. Its a matter of priorities. Some creditors are a priority. Some are not.
Creditors; make sure you position yourself to be a priority.
Creditors, if you are frustrated with your debtors and need some assistance. Reach out for a free 30-minute legal consult. You can book here:
There are many reasons why you may want a liquidator to be removed.
For example, if you are a creditor:
- You want an aggressive liquidator.
- They will look at the affairs of the company.
- They will investigate overdrawn current accounts.
- They will investigate voidable transactions.
- They will investigate transactions at under value.
- They will investigate breaches of duties.
If you are a shareholder, you want a liquidator:
- Who will do nothing!
- You want to pay a fee to procure this.
The contrast is very stark!
There are things a liquidator CAN do. There are things that a liquidator MUST do.
A liquidator MUST take possession of and protect assets for the benefit of creditors.
A liquidator does not need to litigate, if they don’t wish to.
There are two practical ways in which to remove a liquidator:
- By majority vote of creditors at a creditors meeting; or
- If the liquidator breaches duties, by obtaining a High Court order.
Here Brent Norling of Norling Law and Damien Grant of Waterstone Insolvency discuss the practical pitfalls of appointing a liquidator and how to get a liquidator out.
This video will be useful for anyone considering appointing a liquidator or who wants to get a liquidator out of office.
At Norling Law, we offer a free 30-minute legal consultation to anyone needing help in this space. You can book an appointment directly here:
Unfortunately, companies fail routinely. But what are the obligations of the individuals with knowledge of the affairs of the Company, or who have information of the company? Do lawyers who acted for the company need to hand over their files to the liquidator? The answer can be surprising, even (and often) for lawyers! Do accountants need to hand over their files? Do employees need to give liquidators documents? What about any other person that has documents that are ‘of’ or ‘relate to’ the company, do they need to hand them over? What if you have some knowledge of the company’s affairs (but possibly were not even associated with the company); Do you need to sit down under oath and answer questions of the liquidator? Liquidators have wide powers to require certain person to hand over documents and attend interviews under oath. However, these powers are no unfettered. There are boundaries to the power (that are not always observed by liquidators). There are also obligations on certain persons (like directors and employees) to take certain steps immediately after a liquidation, without notice.
It is important to understand:
- The obligations of the individual.
- The rights of the individual.
- What a liquidator can and cannot do in these situations (because, often, they will attempt to be opportunistic).
In this video, Brent Norling, Director of Norling Law and Damien Grant, Liquidator at Waterstone Insolvency discuss all of these issues. Here we offer perspective from a lawyer who routinely acts for and against liquidators and a liquidator. If we can be of any specific assistance, we offer a free 30-minute legal consultation which can be booked here: