Professional Company LiquidatorsServing Banchory Businesses

A company liquidator is a licensed insolvency practitioner who manages the winding up of a company's affairs. Their role includes realising assets, settling creditor claims, investigating the conduct of directors, and ensuring that the company is dissolved lawfully. They act in the interests of all creditors.

The cost of liquidation varies depending on the complexity of the case and the size of the company. Typically, fees are based on the work involved, which may include asset realisation and legal formalities. It is advisable to obtain a fixed-fee quote from a licensed practitioner before proceeding.

Any limited company that is insolvent—meaning it cannot pay its debts as they fall due—may be placed into liquidation. This includes companies with liabilities exceeding assets. A director or shareholder can propose a voluntary liquidation, or a creditor can petition the court for a compulsory liquidation.

The duration of a liquidation depends on the complexity of the case. A straightforward creditors' voluntary liquidation may conclude within six to nine months, whilst more complex cases involving asset recovery or legal disputes can take several years. The liquidator will provide a timeline at the outset.

Once a company enters liquidation, trading must cease immediately. The liquidator takes control of the company's affairs and assets. Continuing to trade after liquidation without the liquidator's consent could result in personal liability for the director. Any trading must be approved by the liquidator.

Alternatives to liquidation include a company voluntary arrangement (CVA), administration, or informal arrangements with creditors. A CVA allows a company to repay debts over time whilst continuing to trade. Administration provides a moratorium from creditors, giving the company breathing space to restructure or find a buyer.

In liquidation, the liquidator will realise the company's assets to pay creditors. This may include selling business premises, equipment, or stock. However, personal assets such as your home or car are generally protected unless you have given personal guarantees or taken loans from the company.

Employees are made redundant when a company enters liquidation. They may be entitled to claim redundancy pay, unpaid wages, and holiday pay from the National Insurance Fund. The liquidator will provide employees with the necessary forms and guidance to make such claims.

Yes, you can start a new company after liquidation, but there are restrictions. If you have been a director of a company that went into insolvent liquidation, you may be subject to a disqualification order or undertaking. It is essential to seek professional advice to understand any restrictions that apply.

When choosing a liquidator, ensure they are licensed by a recognised professional body, such as the Insolvency Practitioners Association. Look for a practitioner with experience in your industry and a transparent fee structure. You can connect with a specialist listed on AccountingFirms to get guidance.