Liquidation Services in Dhaka and Chittagong, Bangladesh

Liquidation usually happens when any company is facing insolvent which means it cannot pay its obligations and the dues and we, at FMCI ensure the same through providing Liquidation Services to our clients, both in the matters related to financial and legal. While company operations end, the remaining assets are used to pay creditors and shareholders, based on the priority of their claims. In short liquidation means the process which brings end to the business while distribute the assets to claimants. In any bankrupt business it no longer exists once the liquidation process is complete. The liquidation can also refer to the process of selling off inventory, usually at steep discounts. Company liquidation can bring both advantage and disadvantage. Disadvantage may describe as to sell the property or anything to pay the creditors. Also, the advantage of liquidation leads to seek business opportunities in other areas after the liquidation.

There are many types of liquidation exists which are Creditors' Voluntary Liquidation - for companies with debts Members' Voluntary Liquidation - for companies with no debts, Compulsory Liquidation - winding-up order issued by a court, Official Liquidation, Provisional Liquidation.

These are explained as follows:

Voluntary Liquidation Services in Bangladesh | FMCI

This particular Liquidation is started by resolution of the company’s Directors and then its Shareholders. The Voluntary Liquidation takes one of two forms depending on the solvency of the company. Every solvent companies must require a Members Voluntary Liquidation (MVL). Also, every insolvent companies must require a Creditors Voluntary Liquidation (CVL).

Members Voluntary Liquidation

A Members Voluntary Liquidation is also known as (MVL). This is a formal way to wind up a solvent company. A Members Voluntary Liquidation always requires the company to be able to pay all of its debts and that all tax lodgments are up to date.

Creditors Voluntary Liquidation

Creditors Voluntary Liquidation is also known as (CVL). If anyone’s company is insolvent (can’t pay its’ debts when they fall due) then it needs a Creditors Voluntary Liquidation (CVL).

Official Liquidation

Official liquidation is otherwise called a court liquidation. In this liquidation bank of the organization applies to court to compel the account holder organization into liquidation. The whole procedure is to do protracted and can be generally costly for the bank. This also includes the loan of serving a statutory demand on the organization to pay an obligation compatible of the corporation act. In the event that the organization neglects to pay the cash requested in the statutory demand the loan boss at that point makes an application to the court to have the organization warped up.

Provisional Liquidation

There must be a possibility of which will occur that an applicant can go to the court while requesting for a provisional liquidator to protect the asset. When this situation arise the role of provisional liquidator is to safeguard and protect the asset also assesses the overall position of the company. And lastly take the recommends to the court for an appropriate outcome or any new resolution.

Liquidation Procedure in Nutshell

While in liquidation a liquidator has some works to do which are:

Realizing the assets: A liquidator must work for insolvent company and achieving the best possible price while needed.
Address outstanding claims: This is against the limited company and satisfy the claims as set-out by law following the rules and regulation of the country.
Distributing the returns: A liquidator must organize and work diligently to the while setting up the order of priority.
Acting in the best interests: They must have to work for the creditors (not the directors).
Maximizing the return for creditors: Also find the possible way to maximize the return for creditor as soon as possible.

FM Consulting International | Most Preferred Liquidator in Bangladesh

In the liquidation process the director is one the most important persons while it comes to take the decision of liquidation is concerned. Before the bankruptcy or liquidation, the executive or the director thinks from the perspective on the investors, what might profit them the most and what might give them greatest income and returns.

While FM Liquidator team kept up and work persistently for the leaser to kept up the liquidation to the loan boss at the earliest opportunity. An outlet consistently needs to remembered is that once the liquidation procedure starts, the goals of the organization will change. While prior the organization was moving with the target of winning greatest benefits now the goal is to take care of the vast majority of the obligations.

FM Consulting International has professional team which works responsibly for the clients in liquidation process.

Meanwhile in this situation the director from the company or entity will stand as a suspended one. And the overall power will go down to the lawmaker of the country. FM liquidation team always follow the rules and regulations while maintain the liquidation process overall.