Eliminating redundant companies is a cost-effective way to streamline management effort and reduce external costs in large corporate groups. It is commonly a necessary final step following a merger or disposal of a business or a decision to cease operations.
McGrathNicol assists corporations to achieve this streamlining by advising on winding down strategies and the appropriate method of dissolution having regard to relevant company assets, liabilities (actual and contingent) and the tax status of the entities.
Prior to liquidation it is important to conduct due diligence to manage contingencies and ensure there are no unintended tax or legal consequences from the corporate rationalisation. We have extensive hands-on expertise in conducting due diligence and advising on or delivering solutions to identified issues.
Once a solvent company is placed into liquidation, the directors’ obligations cease, including the requirement to prepare financial statements and undergo external audit. A solvent liquidation is easily commenced by resolutions of directors and shareholders
There are a range of statutory and tax obligations that the Liquidator must attend to and for which we have well established, cost effective, programmes.