Our client, a provider of specialist IT services, was introduced to Quantuma via their accountant after the directors proposed plans to retire and close down their business.
Due to the rumoured changes to capital gains tax expected to be announced in the autumn budget, the directors and shareholders were keen to place the company into liquidation and receive a distribution of the majority of funds as a matter of urgency.
What we did
Aware of the time sensitivity of the situation, our experts immediately recognised that the company was solvent with significant cash at bank, debtors and a small number of creditors including HMRC, and proposed that the business engage in a Members' Voluntary Liquidation (‘MVL’).
The directors and shareholders were eager to conduct matters remotely as they were within a high risk group in relation to Covid-19. To accommodate their needs, we amended the procedure and a number of video meetings were held with the directors, shareholders and accountant to clearly explain the timelines and strategy.
In addition, written resolutions were issued rather than physical meetings to avoid face to face contact and we arranged for a solicitor to conduct the necessary swearing of a document via the means of a video call.
We successfully liquidated the company within the given timescale ensuing a positive result for all stakeholders. The majority of the funds were distributed to shareholders within four weeks of appointment and, due to our simple fixed fee costs, the figure was in line with expectations detailed at the start of the assignment.
Our investment in the pre-liquidation planning was key to meeting the distribution deadline and to keeping costs to a minimum. As well as this, we adopted a strategy which minimised costs and reduced interest by filing returns and paying HMRC liabilities prior to our appointment, allowing the greatest return to shareholders.