Many businesses will try to avoid solvent liquidation NZ because of the stigma attached to it. The stigma is that companies in liquidation often have outstanding debts and very low assets. This is not always the case and in some cases a company may have low assets but a lot of debt. As well as this, the company liquidating may have a large number of employees and may also be running into financial difficulty. Liquidation NZ is the process of shutting down a company and reorganise and run it as a new company.
Solvent liquidation NZ – Running into financial difficulty!
Most businesses liquidate because they are unable to meet their obligations. There are certain procedures that need to be followed to qualify for liquidation and these vary according to the nature of the business. In some instances, there are other legal procedures which need to be followed. However, the most common reason for liquidation is non-compliance with debt or dividend payment obligations. If a company fails to pay its interest or dividend payments on time then they may be required to liquidate their assets.
There are many aspects of liquidation NZ to look at and the first thing to do is decide which process would be best for your company. Most businesses should seek advice from an accountant or a company formation specialist, who can help you with all of your options and give you the right advice. You must make sure that the option you choose is legal and accredited. It is also important to understand the process fully before taking action and making a decision. If you are unsure about whether or not you should proceed, then you should speak to a professional.