When a company decides to cease operations in Nigeria—whether due to restructuring, insolvency, merger, or voluntary closure—the process must be formally completed through the Corporate Affairs Commission (CAC). One of the most important documents required during this process is the Statement by Liquidator, also known as the Company Liquidation Report.
This report provides a transparent account of the company’s financial position, outstanding liabilities, assets realised, and the final distribution of funds. Without this document, the company cannot be legally dissolved.
What Is a Statement by Liquidator?
The Statement by Liquidator is an official report prepared by the appointed liquidator during the winding-up process of a company.
It outlines:
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All assets realised
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All debts paid or pending
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Funds distributed to creditors
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Final balance of the liquidation account
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Detailed explanation of the liquidation process
CAC requires this statement before final dissolution to ensure the winding-up was done properly and transparently.
Why Is the Liquidator’s Report Important?
1. Ensures Transparent Financial Closure
The document confirms that the company's assets and liabilities were handled lawfully.
2. Mandatory for CAC Final Dissolution
Without it, the company cannot be formally removed from the CAC register.
3. Protects Directors and Shareholders
It shields stakeholders from future claims or disputes after the company has ceased operations.
4. Required for Tax Clearance During Liquidation
The liquidator must work with the FIRS to confirm tax status.
What the Liquidation Report Must Contain
A proper Statement by Liquidator includes:
1. Company Information
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Company name
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RC number
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Registered address
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Date liquidation commenced
2. Liquidator Information
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Name and address of the liquidator
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Appointment resolution or court order
3. Statement of Affairs
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Assets (fixed & current)
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Liabilities (secured, unsecured, preferential)
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Estimated surplus or deficiency
4. Realisation of Assets
The liquidator must list:
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Assets sold
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Amount realised
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Method of sale
5. Payments to Creditors
A breakdown of:
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Debts paid in full
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Debts partially settled
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Outstanding liabilities
6. Distribution to Shareholders (if applicable)
After creditors are settled, surplus funds are distributed to members.
7. Final Account Summary
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Total amount realised
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Total payments made
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Closing balance
8. Declaration & Signature
The liquidator signs and submits the report to CAC.
Types of Liquidation Covered
We assist with liquidation filings for:
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Voluntary Winding-Up
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Insolvency / Inability to Pay Debts
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Court-Ordered Winding-Up
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Members’ Voluntary Liquidation (MVL)
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Creditors’ Voluntary Liquidation (CVL)
Each type requires proper documentation and CAC-compliant reporting.
Our Professional Liquidation Support Services
We help companies complete the entire liquidation process from start to finish.
1. Appointment of Liquidator
We guide your directors or shareholders on the legal steps to appoint a liquidator.
2. Preparation of Statement by Liquidator
We prepare a detailed liquidation report that meets CAC and CAMA 2020 standards.
3. Filing with CAC
We file all necessary documents, including:
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Special resolution for winding-up
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Notice of appointment of liquidator
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Statement of affairs
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Final liquidation report
4. Final Dissolution Certificate
After review and approval, CAC issues:
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Notice of Dissolution
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Updated status report confirming removal from the register
5. Support with Tax Clearance During Liquidation
We provide guidance on FIRS requirements for proper tax closure.
How Long Does the Liquidation Process Take?
The timeline depends on the company’s financial complexity, but typically:
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Simple voluntary winding-up: 4–8 weeks
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Complex liquidation with debts: 3–6 months
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Court-ordered liquidation: depends on litigation timeline
We help fast-track CAC filings by ensuring documents are complete and error-free.
