Expert Company Liquidatorsin Braunton

A company liquidator is a licensed insolvency practitioner who manages the closure of a company. They realise assets, settle debts with creditors, and distribute any remaining funds to shareholders. They also investigate the directors' conduct and ensure the company is struck off the register properly.

The cost of liquidation varies based on the complexity of the company's affairs, the number of creditors, and the value of assets. Typically, fees range from a few thousand pounds for a simple case to more for complex insolvencies. Always obtain a fixed-fee quote before proceeding.

Directors of a company that is insolvent, meaning it cannot pay its debts as they fall due, can propose a creditors' voluntary liquidation (CVL). Shareholders must pass a resolution, and creditors must approve the appointment of a liquidator. A licensed practitioner can confirm eligibility.

The process involves a board meeting to pass a resolution, followed by a shareholder meeting to approve the winding-up. Then, a meeting of creditors is held to confirm the liquidator's appointment. The liquidator takes control of the company, realises assets, and distributes proceeds.

A straightforward liquidation can complete in about six to twelve months, but complex cases may take longer. The timeline depends on the speed of asset realisation, the resolution of creditor claims, and any investigations required. Your liquidator will provide an estimated timeframe.

Once liquidation begins, the liquidator takes over control, and directors cease to have powers. Trading is generally not permitted unless the liquidator decides it is necessary for the beneficial realisation of assets. Continuing to trade without approval could lead to personal liability.

Alternatives include a company voluntary arrangement (CVA) to repay debts over time, administration to rescue the business as a going concern, or informal negotiations with creditors. A licensed insolvency practitioner can assess which option is most suitable for your company's specific circumstances.

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 provides necessary documentation and guidance to help employees make these claims.

Generally, directors are not personally liable for company debts if they have acted properly. However, liability can arise if you have given personal guarantees, traded wrongfully, or misused company funds. A liquidator will investigate and advise on any potential claims against you.

Yes, you can liquidate a company with no assets, often through a creditors' voluntary liquidation. The liquidator's fees may be paid from the company's funds or by the directors personally if there are no assets. This process is sometimes called a 'no-asset liquidation' and is still formal.