Money transfer
In all liquidation cases, the liquidator requires an estate account, so that assets of the company can be realised.
We at SFP recommend that the company’s bank balance is transferred to this account prior to the liquidation in order for them to undertake an initial distribution of 75/80% to shareholders the next practical day after liquidation.
If the client feels uncomfortable with doing so, they can leave the company’s bank balance in its existing account. Once the liquidator is appointed, we can then write directly to the bank to request the funds.
This would, of course mean that the initial distribution to shareholders would not be able to completed the day after liquidation and could only be completed once the funds have been received from the company’s bankers, which can sometimes take a couple of weeks.
In all liquidation cases, the liquidator requires an estate account, so that assets of the company can be realised.
We at SFP recommend that the company’s bank balance is transferred to this account prior to the liquidation in order for them to undertake an initial distribution of 75/80% to shareholders the next practical day after liquidation.
If the client feels uncomfortable with doing so, they can leave the company’s bank balance in its existing account. Once the liquidator is appointed, we can then write directly to the bank to request the funds.
This would, of course mean that the initial distribution to shareholders would not be able to completed the day after liquidation and could only be completed once the funds have been received from the company’s bankers, which can sometimes take a couple of weeks.
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