We assist organisations that need to reduce operating costs and achieve a simplified more transparent corporate structure by dissolving inactive companies that have fulfilled their economic purpose.
PwC's dedicated team of specialists can provide initial advice on the different methods of dissolution, the associated risks to the directors and the group, how best to plan for this type of project and how to avoid the common pitfalls.
Increasingly, clients instruct us to restrict our initial involvement to a preliminary review of the target companies to assist management select the most appropriate method of dissolution. The review also identifies issues that need to be addressed prior to dissolution, and determines the specific allocation of responsibilities for resolving these. We tailor our involvement to match your specific needs and resources.
If this is your situation
- Holding costs, typically between £3,000 to £5,000, are spent each year by management dealing with each dormant or redundant entity
- Senior management time is wasted dealing with the corporate governance requirements of inactive entities instead of live business issues
- A large number of empty companies are present as part of the corporate structure, with no apparent purpose which can raise concerns amongst stakeholders and regulators
- Recent mergers and acquisitions activity has led to restructuring and the presence of dormant companies
- Corporate structure needs to be simplified to release capital tied up in the business
- Certain funds experiencing a decrease in net assets and this makes it uneconomical to continue administering these funds
How we can support you
- Perform members voluntary winding-up, creditors winding-up, corporate liquidations, etc. of Jersey and/or Guernsey entities
- Act as liquidators or project co-ordinators minimising client management time, ensure an orderly winding-up in accordance with local laws and regulations whilst at the same time maximising shareholder return
- Help eliminate recurring and wasted corporate governance expenditure. Costs typically recovered within 12 - 15 months where multiples of companies are being eliminated simultaneously
- Reduce the risk of perceived corporate governance failures
- Free up senior management time spent dealing with corporate governance issues
- Restructuring of fixed life vehicles e.g. where the fund manager wishes to offer the members the option to roll up their capital into another vehicle while also offering a return of capital to other members