Company Liquidators in BexhillExpert Advice for Bexhill

A company liquidator is a licensed insolvency practitioner who takes control of a company that is being wound up. They sell the company's assets, settle outstanding debts with creditors, and distribute any remaining funds to shareholders. They also investigate the directors' conduct and ensure that all legal requirements are met.

The cost of liquidation varies depending on the size and complexity of the company. Typically, fees range from £4,000 to £10,000, plus VAT. A licensed insolvency practitioner will provide a fixed fee quote after assessing your company's financial situation. You should always ask for a breakdown of costs before proceeding.

A liquidator can be appointed by the company's directors, shareholders, or creditors. In most cases, directors propose a voluntary liquidation through a shareholder resolution, and then creditors approve the appointment at a meeting. If the company is forced into compulsory liquidation, the court appoints the liquidator.

The process begins with the directors holding a board meeting to confirm insolvency. Then, shareholders pass a special resolution to wind up the company voluntarily. A licensed insolvency practitioner is appointed as liquidator. The liquidator then realises assets, agrees claims with creditors, and distributes any surplus. Finally, the company is dissolved.

The length of time depends on the complexity of the company's affairs. A simple liquidation might be completed in six to nine months, while more complicated cases with many creditors or assets can take several years. The liquidator must file a final report with Companies House before the company is formally dissolved.

Yes, there are alternatives such as a Company Voluntary Arrangement (CVA), administration, or simply negotiating with creditors informally. A CVA allows the company to repay debts over a period while continuing to trade. Administration gives a licensed practitioner time to restructure the business. Your specific circumstances will determine which option is suitable.

Once liquidation begins, the directors' powers cease, and the liquidator takes control of the company's affairs. You cannot continue trading without the liquidator's permission. If you trade while insolvent, you risk personal liability for wrongful trading. It is essential to seek advice before the company reaches this point.

Employees are entitled to claim certain payments from the National Insurance Fund, including unpaid wages, holiday pay, and redundancy pay. The liquidator will provide each employee with a claim form (RP1) to submit. Employees are also entitled to be paid for any work done up to the date of liquidation.

Generally, no, because a limited company is a separate legal entity. However, if you have given personal guarantees for business loans or credit, you may be liable for those debts. Additionally, if you have acted dishonestly or traded wrongfully, you could face personal liability. A licensed professional can advise on your specific exposure.

You should choose a licensed insolvency practitioner who is authorised by a recognised professional body, such as the Insolvency Practitioners Association or the Institute of Chartered Accountants. Look for someone with experience in your industry and who offers a clear fee structure. You can also ask for recommendations from your accountant or solicitor.