How does the liquidation process start?
When a company is in serious financial difficulties, creditor pressure will often result in the directors consulting an insolvency practitioner, perhaps via their accountant, solicitor or bank manager. The advice given by the practitioner will cover a number of areas but, if the company cannot be saved, the principal advice will be to place the company into liquidation as soon as is practically possible. A meeting of directors is therefore convened (see INS42015).
