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Corporate Simplification / Solvent Liquidation

Legal Entity Reduction: Simplifying entity structures and exiting non-core businesses/operations

How do we help our clients?

We help our clients to simplify their legal structures, maximize value for shareholders and exit non-core businesses and operations.

Corporate simplification/ Members Voluntary Liquidation is an effective way of delivering long-term strategic cost savings and compliance benefits to an organisation. The Deloitte team advise on the most appropriate method to wind down, close and eliminate both active and dormant companies, acting as solvent members’ voluntary liquidators if circumstances dictate.

 

Eliminating a company by way of a members Voluntary Liquidation

Dissolving a solvent company that has ceased trading or is dormant.

Once the directors and shareholders decide to put a company into liquidation, they appoint a liquidator via a board meeting and a shareholders’ resolution.

Once appointed the liquidator will:

  • Pay any outstanding creditors
  • Ensure all tax returns are brought up to date
  • Obtain tax clearance from the Revenue Commissioners
  • Distribute any surplus funds to the shareholders
  • Call a final meeting of the shareholders to dissolve the company

 

Key benefits

Cost Savings

  • Savings on ongoing audit and accounting costs

Savings in Management Time

  • Savings in management time previously taken up with the preparation of financial information and tax returns.

Reduced Risk

  • Reducing risk to the company and its directors by avoiding corporate memory loss. This can happen when a company is being inactively maintained.

Tax Efficiencies

  • Can be a very tax efficient method of distributing cash/ assets to shareholders.

Averts Risk of Involuntary Strike Off

  • Averts the danger of an inactive company being involuntarily struck off which can result in the loss of a company’s limited liability protection.
     

Legal Entity Reduction – Simplifying a group structure

Before embarking on an entity reduction project these are some typical issues to consider.

  • Is there a good knowledge of the corporate history of the entities targeted for elimination? What legacy issues could remain within the entities and if so, do I know how to deal with them, in an optimal manner?
  • Is there complete knowledge of all actual/contingent assets within the entities? If so, do I know how to avoid these assets potentially passing to the state upon dissolution? Likewise, failure to distribute assets correctly could cost thousands of euros in additional taxation charges.
  • Do I know how to release trapped capital effectively, navigate lease savings and protect IP?

In short, it generally pays to take early advice before embarking on an entity reduction project. As a first step we would be delighted to discuss your needs and challenges, how to best address issues (for example those highlighted above) and how to structure a cost-effective project that minimises the impact on your internal teams.

Credentials

Case studies tbc

How we can help

Our Corporate Simplification/ Members Voluntary Liquidation experts can guide you through all aspects of the process by:

  • Providing a free and confidential consultation to discuss your needs and challenges, how to best address the issues and how to structure a cost-effective project that minimises the impact on your internal teams.
  • Assisting you in putting companies into liquidation and acting as liquidator if required.
  • Providing a comprehensive, low cost, service that is excellent value for money.
     
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