Expert Company Liquidatorsin Brighton And Hove

A company liquidator is a licensed insolvency practitioner who takes control of the company, realises its assets, settles creditor claims, and distributes any remaining funds to shareholders. They also investigate the conduct of directors and ensure the company is dissolved properly.

Costs vary depending on the complexity of the company's affairs, the number of creditors, and whether the liquidation is voluntary or compulsory. A licensed practitioner will provide a fixed fee quote after an initial assessment, so you know the costs upfront before committing.

Once a company enters liquidation, the liquidator takes over control and the directors' powers cease. Trading is generally not permitted unless the liquidator decides that continuing to trade is necessary for the beneficial realisation of assets, but this is rare and requires specific approval.

Solvent liquidation, often called a members' voluntary liquidation, is used when a company can pay its debts in full within a set period. Insolvent liquidation, or creditors' voluntary liquidation, is used when the company cannot pay its debts, and it involves a meeting of creditors to approve the liquidator's appointment.

A simple creditors' voluntary liquidation might conclude in six to nine months, while more complex cases with asset realisation or legal disputes can take several years. The liquidator must finalise all matters, including investigations and creditor distributions, before the company is dissolved.

Alternatives include a company voluntary arrangement (CVA) to repay debts over time, administration to attempt a rescue, or a formal restructuring. For solvent companies, striking off is a cheaper route, but it is not suitable if the company has significant assets or liabilities.

Yes, but the process is different. If the company has no assets to pay for liquidation, creditors can apply to wind up the company, or directors may use a simplified process if available. You should seek advice to understand the most cost-effective route for your situation.

Employees are made redundant when a company enters liquidation. They become preferential creditors for unpaid wages, holiday pay, and pension contributions, up to statutory limits. The liquidator will provide the necessary forms for employees to claim from the National Insurance Fund.

In a creditors' voluntary liquidation, a meeting of creditors is held to confirm the liquidator's appointment, though this can be done via deemed consent or virtual meetings. Directors must provide a statement of affairs and answer questions, but attendance is not always mandatory for every director.

Trading while insolvent can lead to personal liability for wrongful trading if you continue to incur debts without a reasonable prospect of repayment. Directors may also face disqualification or personal liability for breach of fiduciary duty. Seeking advice early can mitigate these risks.