Are liquidation committees necessary?

By admin | 02/08/2022
Liquidation committees provide transparency and help to protect creditors' rights in liquidation procedures

Sometimes when a company is wound up via compulsory liquidation or creditors’ voluntary liquidation (CVL) a liquidation committee is formed to monitor the liquidator’s activities and look after creditors’ interests. Without liquidation committees, liquidators could do as they please and put their own interests over those of creditors. The establishment of a committee gives creditors…

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Company insolvencies rapidly increasing

By admin | 02/08/2022
A surge in company liquidations in England and Wales since the Covid-19 pandemic

Government figures reveal a 40% increase in the number of registered companies that entered insolvency procedures during the past year. Newly-released data shows the number of companies entering statutory insolvency procedures has risen 15% compared to pre-pandemic levels in June 2019. Furthermore, the number of companies that were placed into a creditors’ voluntary liquidation (CVL)…

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