Whilst liquidation may seem like an ideal process for company directors who wish to bring the business to an end, the procedure can affect the future of all those involved, particularly if the company experienced problems during the procedure. If the company were MVLfound to be trading wrongfully, then the procedure could have a negative effect in the future for all those involved.
Some company-directors may wish to start up a new business after liquidation, but this can be difficult, particularly if the procedure had a negative effect on the company's reputation. However, some companies may be in a comfortable position to start up business again, particularly if it previously went through a Members Voluntary Liquidation, which is usually undertaken by solvent companies.
Before starting up business again, company directors may wish to draw up a business plan and make a note of the previous financial problems that the company encountered. Being aware of the causes of insolvency will allow company-directors to prevent the same problems from occurring in the future. Seeking advice from a financial advisor will also enable company directors to discuss any past problems and draw up a business plan that is likely to be successful.
As liquidation can sometimes be a difficult process, there is a possibility that some company-directors that worked together previously may wish to part company. Some company directors may wish to take up a different career, whilst others may still be willing to try out a MVL new business venture. For those that are unsure, seeking business will provide just enough information to decide whether or not starting up a new business is the best option.
In order to avoid problems in the future, some companies may wish to seek the help of an insolvency practitioner to find alternative procedures to liquidation that will allow the company to remain in business.