Liquidation Services in Bangladesh

Liquidation is a crucial process undertaken when a company faces insolvency, unable to meet its financial obligations. At Right Solution, we specialize in providing comprehensive Liquidation Services to assist clients in navigating both financial and legal complexities. During liquidation, the company’s operations cease, and its remaining assets are utilized to settle debts to creditors and shareholders, following a predetermined priority order. Essentially, liquidation marks the end of a business, distributing its assets among claimants. This process may also involve selling off inventory at discounted rates. While liquidation poses challenges such as selling assets to repay debts, it also presents opportunities for individuals to explore new business ventures post-liquidation. We strive to guide our clients through this transition, ensuring a smooth and equitable resolution amidst financial adversity.

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 | RIGHT SOLUTION 

Voluntary liquidation services refer to a company deciding to end its activities and dissolve willingly. This choice usually comes about when the company’s board members and owners decide that it is no longer feasible or needed to keep running. Voluntary liquidation may happen due to a range of factors like financial troubles, market changes, or shifts in business strategy.

Members Voluntary Liquidation (MVL)

Members’ voluntary liquidation is a process where a solvent company elects to close down its operations by distributing its assets among shareholders. It requires a declaration of solvency by the company’s directors and approval by the shareholders

Creditors Voluntary Liquidation (CVL)

When a company is insolvent and unable to pay its debts as they fall due, it can undergo a Creditors Voluntary Liquidation (CVL). In a CVL, the company’s directors voluntarily wind up the company’s affairs, and a liquidator is appointed to sell off assets and distribute the proceeds to creditors. This process helps to manage the company’s liabilities in an orderly manner and mitigate further losses to creditors.

Official Liquidation

Official Liquidation is a formal process initiated by a court order when a company is insolvent or unable to pay its debts. In this process, a court-appointed liquidator takes control of the company to collect and sell its assets. The proceeds are used to pay off creditors in a specific order of priority. This type of liquidation ensures that the finishing process is conducted under judicial oversight, providing a structured and legal framework for the distribution of the company’s remaining assets. The ultimate goal is to dissolve the company and remove it from the register of companies.

Provisional Liquidation

Provisional Liquidation is a temporary measure where a provisional liquidator is appointed by the court to safeguard a company’s assets during legal proceedings. This process aims to prevent asset dissipation or mismanagement until a full hearing determines whether the company should be formally liquidated. It provides immediate protection and stabilization for the company’s financial situation.

Liquidation Procedure in Nutshell

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

  • Realizing the Assets: The liquidator must work diligently to sell the insolvent company’s assets, aiming to achieve the best possible price to maximize the funds available for creditors 

  • Addressing Outstanding Claims: The liquidator must handle claims against the company, ensuring they are settled according to the legal framework and regulations of the country.

  • Distributing the Returns: The liquidator must organize the distribution of the realized funds, prioritizing creditors in the legally mandated order of priority.

  • Acting in the Best Interests: The liquidator’s primary duty is to the creditors, ensuring their interests are prioritized over those of the directors or shareholders.

  • Maximizing the Return for Creditors: The liquidator must explore all possible avenues to maximize the return to creditors, striving to complete the process efficiently and effectively.

RIGHT SOLUTION | Most Preferred Liquidator in Bangladesh

Right Solution boasts a team of highly skilled professionals with extensive experience in handling complex liquidation cases, ensuring expert management and compliance with Bangladeshi legal standards.We offer a full range of liquidation services, including asset realization, claims settlement, and fund distribution, providing a seamless and efficient process for all stakeholders.We ensure all liquidation processes adhere to the latest legal and regulatory requirements in Bangladesh, minimizing risks and safeguarding the interests of all parties involved.With numerous successful liquidations completed, Right Solution has established a reputation for effectiveness and reliability, making us the go-to choice for businesses needing liquidation services in Bangladesh.