Groups of companies often have some dormant subsidiaries whose useful life is over and which add no value to the business. These subsidiaries have often become dormant as a result of mergers and acquisitions or transfers of businesses and assets between group companies. Where such companies have been acquired in past acquisitions the current management may not have any historical knowledge of the company and not be aware of any potential liabilities that could lurk in these companies. Therefore as a matter of risk management, groups should regularly review their group structure and remove any unwanted companies. Additionally, it is estimated that each dormant subsidiary costs £3,000-£5,000 per annum in compliance costs and management time.

We can assist with performing the review of inactive companies and provide recommendations for which companies are suitable for winding for by MVL or whether certain companies may be struck off without the need for a formal winding up.  Alternatively, where groups have already identified the companies to be wound up we can prepare all the necessary documents for the required board meetings and general meeting and act as liquidator.

Moorfields has the advantage that as an independent corporate recovery firm we are not restricted in the services we can provide as liquidators.  Audit firms are only able to act for their clients as liquidators in solvent liquidations and are further restricted from taking any management decisions in respect of companies in liquidation.

If you have a number of companies to be liquidated there may be significant cost savings if the companies are all liquidated together.  Please call 0207 186 1159 to discuss your needs and we would be happy to provide a quote for the proposed liquidations.