Professional Company Liquidators inAshbourne for Business Closure

A licensed insolvency practitioner manages the closure of a company. They realise assets, agree creditor claims, and distribute any funds. They also investigate the conduct of directors and ensure that the legal requirements are met before the company is formally dissolved.

Fees vary depending on the complexity of the case and the amount of work required. A fixed fee is sometimes agreed for straightforward cases, whilst others are based on time or a percentage of realisations. You should always request a clear breakdown of costs before proceeding.

You are eligible if your company is insolvent, meaning it cannot pay its debts as they fall due. The directors must make a statutory declaration of solvency or insolvency, and shareholders must pass a resolution. A licensed practitioner must be appointed to act.

A Creditors' Voluntary Liquidation typically takes between six and twelve months to complete. The process involves a meeting of creditors, the realisation of assets, and the final distribution. The company is usually dissolved after the final meeting, although some cases take longer.

Once a liquidator is appointed, they take control of the company. Directors cannot continue trading without their authority. If you are considering liquidation, you should seek advice before making any decisions about continuing to trade, as wrongful trading can have serious consequences.

A Members' Voluntary Liquidation is used for solvent companies, where directors can declare solvency. A Creditors' Voluntary Liquidation is for insolvent companies. The procedures differ in terms of the declarations required, the role of creditors, and the overall purpose of the process.

The liquidator takes control of all company assets. They will sell them to generate funds for distribution to creditors. Secured creditors, such as banks, have priority over unsecured creditors. The liquidator must obtain the best possible price for the assets.

You must cooperate fully with the liquidator. This includes providing all relevant books and records, answering questions about the company's affairs, and attending meetings if required. You must not dispose of any assets or prejudice the interests of creditors.

You can challenge a decision if you believe the liquidator has acted improperly or unreasonably. You may need to apply to the court or complain to the liquidator's regulatory body. It is advisable to seek independent legal advice before taking any action.

Alternatives include a Company Voluntary Arrangement, which is a formal agreement with creditors to pay debts over a period. Administration is another option, which aims to rescue the company as a going concern. Informal arrangements with creditors may also be possible.