The title of this week's Brandon's blog is Liquidation Of Company Assets.
When Shareholders Are Intent On Crushing
Each Other What Can A Voluntary Liquidator Do?
This Brandon's Blog below
gives you all the information and everything you need to know about
liquidating a company while it is still solvent.
My name is Ira Smith.
President of Ira Smith Trustee & Receiver Inc.
Both Brandon Smith and myself are available to answer any
questions you may have either about this Brandon's Blog or anything else at all.
So shoot us a message, give us a phone call.
We would love to speak with you.
Today's Brandon's Blog goes over everything
about liquidating a company while it is still solvent.
If all of its assets are sold and it can pay off all of its creditors
and still have money left over for the shareholders.
Brandon goes over why would a company want to liquidate if it is solvent?
There are several reasons.
Perhaps it is solvent, but no longer viable.
It's not practical to operate,
the management is old and tired and doesn't have the ability or desire
to invest resources and the time necessary to make the business viable again.
Perhaps shareholder disputes, which is exactly what happened in the real life
case example Brandon describes below that we are currently involved in.
Perhaps the company just can't be sold because it's technology and its practices
and its services or products that it offers are just too long in the tooth.
And finally, to avoid bankruptcy.
Perhaps the best days of this company are behind it.
Going forward is only going to incur losses.
So why not liquidate now, while there's value for the shareholders?
Brandon then talks about how a liquidation
of company assets begin, the two types of liquidations in Canada
for solvent companies, either voluntary or compulsory or court-supervised.
Brandon then talks about special considerations
in court-supervised liquidations, how would the distribution of assets work,
and then discusses the real life example we're currently involved in of two
affiliated companies where the shareholders passed a special
resolution to put both companies into liquidation and wind them up
and appointed our Firm to handle the liquidation.
And he talks about how we used
the Ontario Business Corporations Act to break a logjam
and turn a voluntary liquidation into a court-supervised liquidation.
So I hope you can read the entire
Brandon's Blog below, because it tells you everything you need
to know about liquidating a solvent company in Canada.
Again, both Brandon Smith and myself are available to answer any questions that you
may have either about this Brandon's blog or anything else at all.
So shoot us a message, give us a phone call.
We would love to speak with you.