Expert Company LiquidatorsServing Bexley Businesses

A company liquidator is a licensed insolvency practitioner who manages the winding-up of a company's affairs. They sell assets, settle debts, and distribute any remaining funds to creditors. They also investigate the conduct of directors and report to the relevant authorities if necessary.

The cost varies depending on the complexity of the company's affairs, the number of creditors, and the value of assets. Typically, fees range from £4,000 to £8,000, but this can be higher for complex cases. Always obtain a fixed-fee quote from a licensed professional before proceeding.

Any limited company that is insolvent—meaning it cannot pay its debts as they fall due—may be eligible for liquidation. This includes companies with significant debts, those facing legal action from creditors, or those where the directors believe the company has no viable future.

The process typically involves a directors' meeting to pass a resolution for voluntary liquidation, followed by a creditors' meeting. The appointed liquidator then takes control of the company's assets, realises them, and distributes the proceeds to creditors in the statutory order.

A simple creditor voluntary liquidation can be completed in as little as six to twelve months. However, if there are complex asset realisations, legal disputes, or investigations, the process can take several years. The liquidator will provide a timeline based on the specific circumstances.

Alternatives include a company voluntary arrangement (CVA), which allows the company to repay debts over a period, administration, which provides a moratorium from creditors while a restructuring is attempted, or informal arrangements with creditors. Each option has different implications for the company and its directors.

Directors can be personally liable if they have acted wrongfully, such as trading while insolvent without taking proper steps to protect creditors, or if they have misused company funds. The liquidator can seek a court order for personal contribution in such cases.

Employees are automatically made redundant when a company goes into liquidation. They may be entitled to claim redundancy pay, unpaid wages, and holiday pay from the National Insurance Fund, but only if they meet the statutory eligibility criteria.

No, you do not need a solicitor. A licensed insolvency practitioner can handle the entire liquidation process. However, if you have complex legal issues, such as disputes with creditors or potential director misconduct, it may be wise to seek independent legal advice.

You will need to provide the company's financial records, including bank statements, tax returns, and a list of creditors and assets. You will also need to provide details of any transactions made in the past two years, particularly those involving directors or connected parties.