Walsh Taylor has experience of working with a broad range of Third Sector organisations. Charities, social enterprises, industrial provident societies and membership organisations who find themselves in difficult financial situation have many of the routes available to them that a limited company has. However Walsh Taylor believe a very different approach is required.
The Walsh Taylor Third Sector Package
Third Sector organisations, the markets they serve, their sources of funding and stakeholders are often diverse and a bespoke approach is needed that truly takes into account the sensitivities and make up of each of these.
When working within this sector Walsh Taylor provide all clients with a package of support from the start to assist the trustees or directors in managing the process. This includes:
- assistance in providing effective communication/press releases to their stakeholders to ensure that their public is well informed and other organisations that may be interested in working with them, taking over services or providing funding are also reached.
- attending meetings of members, directors or trustees to explain the options and process
- approaching of their behalf our contacts within the sector to identify alternative partners
As with all types of organisations Walsh Taylor believe that a formal insolvency procedure resulting in closure should be the last option for any organisation in difficulty. With the majority of trustees and directors acting as volunteers and with issues of sensitivity and reputation often prevalent, Walsh Taylor work hard to find a solution that enables the services that the organisation provides to continue.
Through our management team, professional advisors and stakeholders we can offer:
- Restructuring advice
- Turnaround strategies
- Informal payment arrangements
- Debt management plans
- Corporate finance advice
- Guidance on the personal consequences of insolvency on directors and trustees
Administration allows a business to continue trading while offering protection from action brought by creditors.
The proceedings can be started by the company, its directors or a creditor. The holder of a qualifying floating charge can also make an application for an administration order at short notice.
A “pre-pack” procedure would see the sale of the business and assets immediately upon appointment of an administrator.
Creditors’ Voluntary Liquidation (CVL)
This is an insolvent liquidation procedure started by the company directors or trustees
It usually means an immediate halt of business and the sale of assets piecemeal.
Company Voluntary Agreement (CVA)
This is an agreement between the company and its creditors and shareholders.
For a CVA to be approved the proposals must receive 75% support (in value) of the creditors who choose to vote on it. Half of the shareholders must also be in agreement.
A CVA will allow the existing management to continue to run the business, and a Supervisor will oversee the implementation of the CVA.
Members Voluntary Liquidation
Although not an insolvency procedure, MVL does require the services of a Licensed Insolvency Practitioner.
It is used when the directors of a solvent business opt to cease trading and requires a majority of directors or trustees to swear a declaration that all creditors will be paid in full, along with statutory interest within a maximum of 12 months.
A Liquidator is appointed by shareholders to realise the company’s assets, and settle creditor claims before distributing any surplus assets to shareholders.
MVL can be a tax efficient way for owners to extract value from their companies.
Receivership is now usually replaced by administration, but it is still available to holders of floating charges
Receivers can also be appointed under the Law of Property Act to deal specifically with property.