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Creditors' decision notice in a liquidation: what it means

What a Gazette notice asking a company's creditors to decide on a liquidator means, why it confirms the company is insolvent, and what creditors should do.

Severity
Critical
Category
Legal
Plan
Free and above
Test code
LEG-025

What this test checks

Looks for a Gazette notice calling on the company's creditors to decide on the appointment of a liquidator. It is a formal step in a creditors' voluntary liquidation, traditionally a creditors' meeting and now usually held as a virtual meeting or by deemed consent.

Its publication means the directors have accepted that the company cannot pay its debts and that the shareholders have resolved, or are about to resolve, to wind it up.

What a fail looks like

A creditors' decision notice has been published. The company is entering creditors' voluntary liquidation and will stop trading.

Harmless explanations

  • There is no harmless version of this notice. A solvent closure goes through a members' voluntary liquidation, which has no creditors' decision.

What to do

  • If you are owed money, take part in the decision: you can vote on the liquidator and ask questions about the company's affairs.
  • Submit your claim to the liquidator once appointed.
  • Replace the supplier.

Background: What insolvency means for a supplier.

Part of the test catalogue. Every check Senserity runs, with its severity and the plan it is available on.

Last reviewed .

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