We have a team of highly experienced practitioners who regularly work on various types of liquidations.
If shareholders or a holding company no longer require a company, they will often place it into solvent liquidation. If so, their main objectives will be to:
- Realise the assets of the company;
- Resolve all outstanding matters of the company, including the settlement of claims of all creditors; and to,
- Distribute the surplus assets to the stakeholders.
Our team can assist in all stages of the solvent liquidation process. We regularly act as liquidators of solvent companies initiating and finalising liquidations in a timely and appropriate manner.
The liquidation of companies that are no longer required by shareholders or the holding company often achieves a number of benefits. These include:
- Group simplification – eliminating dormant legal entities to achieve a more cost efficient company structure;
- Savings in audit and accounting costs;
- Savings in management time preparing financial information, tax returns and annual returns;
- Recognising and avoiding corporate memory loss, the loss or lack of transfer of knowledge within an organisation caused by departing senior executives;
- Reducing the number of directorships held personally.
Liquidation of investment funds
Investment funds may fail to attain critical size because of lack of market interest or a reduction in value of underlying assets. In such cases the Board may propose the dissolution of the fund to investors and the appointment of a liquidator.
Deloitte combines the skills of an experienced liquidator with deep industry expertise of the Luxembourg investment funds sector.
As liquidators we typically fulfill the following obligations:
- Realisation of assets
- Cancellation of contracts and identification of liabilities;
- Supervise the maintenance of accounting records;
- File tax returns (VAT, taxe d’abonnement);
- Call shareholders’ meetings;
- Prepare the report of the liquidator to the General Meeting;
- Organise the audit of the liquidation and respond to auditors’ queries.
Our appointment as liquidators typically brings the following advantages:
- Elaboration of a detailed liquidation plan;
- Improved coordination of the different functions involved: client relationship management, accounting, legal , transfer agent and depository bank;
- Respect of the original time schedule, to the satisfaction of investors;
- No tie-up of management time.
Our appointment will give you access to the multidisciplinary expertise of Deloitte, ranging from tax matters to the evaluation of illiquid investments.
Judiciary liquidations (insolvency)
It is not always possible to preserve a struggling business as a going concern. Liquidation provides a mechanism for the formal winding up of a company in a controlled manner by a liquidator appointed by the Court.
The liquidator realizes assets for the benefit of creditors, shareholders and other stakeholders concerned. The liquidators may also perform extensive investigations into failed companies, examining the conduct of a company’s directors and senior management in order to establish the reasons for its failure. Deloitte closely work with the legal profession in this respect.