Company Liquidators in AndoverGuidance for Directors

A company liquidator is a licensed insolvency practitioner who manages the closure of a company. They realise assets, settle creditor claims, and ensure that the company is struck off the register. They also investigate the conduct of directors and report to creditors as required.

Costs vary depending on the complexity of the case, the number of assets, and the level of creditor involvement. Typically, fees range from a few thousand pounds for a simple creditors’ voluntary liquidation. Always obtain a clear written quote before engaging a liquidator.

Solvent liquidation, known as a members’ voluntary liquidation, is used when a company can pay its debts in full. Insolvent liquidation, usually a creditors’ voluntary liquidation, is used when liabilities exceed assets. The procedures differ in terms of paperwork, creditor control, and director duties.

Yes, it is possible to liquidate a company with no assets, but you must still follow the correct legal process. A liquidator will need to confirm that there are no assets to distribute and that the company is insolvent. In some cases, a director may apply for a compulsory strike-off instead, but this does not deal with debts.

A creditors’ voluntary liquidation typically takes between six and twelve months to complete, depending on the complexity of the case. A members’ voluntary liquidation can be quicker, often concluding within three to six months. The timeline also depends on how quickly assets are sold and claims are resolved.

Alternatives include a company voluntary arrangement (CVA), administration, or informal arrangements with creditors. A CVA allows the company to continue trading while paying debts over time. Administration provides a moratorium from legal action. A licensed insolvency practitioner can advise which option is most suitable.

Directors must cooperate fully with the liquidator, provide all company records and accounts, and disclose any transactions that may be scrutinised. You must not hide assets or destroy records. Failure to cooperate can lead to personal liability or disqualification as a director.

Generally, no, because a limited company is a separate legal entity. However, personal liability can arise if you have given personal guarantees, taken director’s loans that are not repaid, or engaged in wrongful trading. The liquidator will examine these areas and may pursue recovery if necessary.

Yes, you can liquidate a company that is still trading, but you must first decide whether the company is solvent or insolvent. If it is solvent, a members’ voluntary liquidation is appropriate. If it is insolvent, a creditors’ voluntary liquidation is required, and trading must cease unless the liquidator agrees otherwise.

Look for a licensed insolvency practitioner who is registered with a recognised professional body, such as the Insolvency Practitioners Association or the ICAEW. Check their experience with companies of your size and sector, and ask for a clear fee structure. You can also speak with a specialist listed on AccountingFirms.