Company Liquidators inBridgwater

A company liquidator is a licensed insolvency practitioner who takes control of a company that is being wound up. Their role is to realise the company's assets, investigate its affairs, and distribute the proceeds to creditors in the correct statutory order, while ensuring that directors comply with their legal duties.

The cost of liquidation varies depending on the complexity of the company's affairs, the number of creditors, and the value of assets. Typically, fees are paid from the company's assets, but if there are insufficient assets, directors may need to fund the process personally. A licensed practitioner will provide a clear fee quote before you proceed.

Creditors' voluntary liquidation is available to insolvent companies, meaning those that cannot pay their debts as they fall due. The directors must pass a resolution to wind up the company, and then a meeting of creditors is held to confirm the appointment of a liquidator. The company must have sufficient funds to cover the liquidation costs.

The duration of a liquidation depends on the complexity of the case. A straightforward creditors' voluntary liquidation might be completed within six to twelve months, but cases with complex asset realisation or investigations can take longer. Your liquidator will provide an estimated timeline at the outset and keep you informed throughout.

If your company is insolvent, you must act in the best interests of creditors. Continuing to trade without a realistic prospect of recovery could lead to wrongful trading claims against you personally. It is advisable to seek professional advice immediately and, if liquidation is inevitable, to cease trading as soon as possible.

Alternatives include a company voluntary arrangement (CVA), which allows you to repay debts over a period while continuing to trade, or administration, which may enable the business to be sold as a going concern. Informal arrangements with creditors can also be explored. A licensed insolvency practitioner can help you assess which option is most suitable.

When a company goes into liquidation, employees are made redundant. They may be entitled to claim statutory redundancy pay, unpaid wages, and holiday pay from the National Insurance Fund, but the process is handled by the Redundancy Payments Service. The liquidator will provide employees with the necessary claim forms and guidance.

Generally, directors are not personally liable for company debts, but there are exceptions. If you have given personal guarantees, you will be liable for those amounts. Additionally, if you have acted improperly, such as trading while insolvent or misusing company funds, a court may order you to contribute to the company's assets.

You will need to provide the company's financial records, including accounts, bank statements, tax returns, and details of assets and liabilities. You should also prepare a statement of affairs, which lists the company's assets and debts, and provide information about any transactions that may be scrutinised, such as payments to directors or connected parties.

You should choose a practitioner who is licensed 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 a clear fee structure. You can also ask for recommendations from your accountant or solicitor, or search the register of insolvency practitioners.