CREDITORS VOLUNTARY LIQUIDATION LIMITED COMPANY
(Part IV S98 Insolvency Act 1986)

The Directors resolve to voluntarily wind-up the company due to its Insolvency. Notices are sent to creditors and shareholders giving them 14 days notice of the convened meeting. In some instances, in order to preserve the assets of the Company, Liquidator is appointed under Short Notice.

The Liquidator's powers are restricted until his appointment is ratified by the creditors at their meeting. If the liquidator wishes to sell any assets prior to the Meeting of Creditors, then an application to the Court must be made for sanction of same. Preparation of Statement of Affairs, list of creditors and report for creditors meeting.

The shareholders pass an Extraordinary Resolution putting the Company into creditors voluntary liquidation and appointing a Liquidator at a meeting held prior to the creditors meeting. At the creditors meeting, the creditors are presented with a Statement of Affairs together with a report
explaining the Company's demise.

The creditors confirm the shareholders' appointee as Liquidator or appoint someone else in their place; appoint a Creditors Committee. The Liquidator files and advertises notice of his appointment in the London Gazette and two local newspapers. The Liquidator realises the assets. The Liquidator agrees creditors' claims. The Liquidator distributes funds, reports to creditor's and holds final winding-up meeting. The Company is dissolved. The Liquidators remuneration is agreed by the creditor's or the Creditor's Committee, if one is appointed.

Enterprise Act

The insolvency provisions of the Enterprise Act took effect on the 15th September 2003 as follows;
Customs and Inland Revenue have lost their preferential status in the distribution of insolvent assets.