Company Liquidation Services in Dubai

The Basics of Company Liquidation in UAE

Company liquidation is the process of closing down a company. It is an event that usually occurs when a company has no money to pay its remaining debt. When the company operation ends, usually the organizational assets are distributed to creditors and shareholders, based on their priority of claims.

In general, the person who conducts the overall liquidation process is called a liquidator. A liquidator is appointed by the court or the shareholders of the company, according to the type of liquidation.

Leeway offers highly expert company liquidation services to businesses that need assistance with closing down. Our services are based on years of experience and unmatched expertise. So if things have reached a point where liquidation in UAE is unavoidable, feel free to get in touch with us right away.

Liquidation in Dubai - Types

Company liquidation may be of the following two types:

1. VOLUNTARY LIQUIDATION 2. COMPULSORY LIQUIDATION

In the case of voluntary liquidation, the shareholders of a company will decide to wind up the company as they have no money to pay for creditors. In this type of liquidation, priority is given to the creditors.

Compulsory liquidation is a type of company liquidation that is put forward by court order. Here, the assets of the company are distributed to the creditors and contributors based on the priority of claims.

Role of a Liquidator

A liquidator is a chief decision-maker in a liquidation process. The duties of a liquidator are as below:

1. INITIATING THE WINDING-UP PROCESS 2. PUBLISHING THE LIQUIDATION NOTICE 3. OVERVIEW OF COLLECTION & DISTRIBUTION OF COMPANY ASSETS 4. PREPARING THE STATEMENT OF AFFAIRS

Once the Board of Directors/Shareholders pass a resolution for the liquidation or winding up, and the appointment of a liquidator, the liquidator, upon the receipt of such resolution, issues an acceptance letter.

Once the liquidation process is initiated, the liquidator publishes the liquidation notice, both in Arabic and English, in 2 local newspapers.

If needed, the liquidator may overview the collection and distribution of company assets, and the settlement of liabilities.

As the last step in the liquidation process, the liquidator prepares the statement of affairs and the liquidator's report.