Business Administration and Liquidation Rates Reach New Low

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On 29 July 2014 the Insolvency Service released its quarterly statistics on insolvency in England and Wales.  The figures show that the number of companies entering into administration has fallen to the lowest level for four successive quarters since the start of 2005.

There were 410 administrations in England and Wales during the second quarter of 2014 according to the latest statistics.

The liquidation rate of companies in the last 12 months is also at the lowest rate since the data has been made available.  Liquidation is the process by which a company is brought to an end and a liquidator is appointed to ‘wind up’ the affairs of a limited company and redistribute the assets and property of the company to creditors and/or shareholders.

In the last quarter there were 3461 companies liquidated which was the lowest since 2008.  The Insolvency Service says this may be due to the successive decreases in the number of Creditors Voluntary Liquidations, whereby a shareholder of a company can themselves pass a resolution that the Company be wound up voluntarily.

The Business Law team at Forbes can offer advice on all insolvency matters, please do not hesitate to contact them on 0800 037 4628.or via the contact form.

Nick Pickup

About Nick Pickup

Nick Pickup is a Solicitor within the Corporate and Restructuring team at Forbes Solicitors. Nick’s blogs cover his specialism of work on mergers and acquisitions, business start up’s, joint ventures, shareholder issues, company restructures and general company advice.
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