The Liquidation Lifecycle

Liquidation Timeframe

There is no prescribed timeframe under the Companies Act 1993 dictating the duration of a liquidation of a company. It is largely dependent on how quickly the assets of the company can be realised and distributed. Where litigation is involved the liquidation can span years.  Liquidators however has a duty under the code of conduct to attend to their duties in a timely way.

A company with no assets takes about 3 to 6 months depending on how quickly the liquidator completes his/her investigation into the affairs of the company. The length of time is subject to the complexity of the work.

A simple liquidation could span the notice period (4 weeks) and the objection period (4 weeks) plus the timing of the Companies Office to process the notice of intention to remove the company from the Register. The Companies Office also advertise the intention to strike off the company. The minimum time is therefore about 12 weeks. Most liquidations will span about six months.

The link to the flowchart sets out the process of liquidating an insolvent company.

Read 560 times