Professional Company LiquidatorsServing Britten Court

The cost varies depending on the complexity of the case, the number of creditors, and the assets involved. A licensed liquidator will provide a fixed fee quote after an initial assessment. This fee covers statutory filings, creditor communication, and the final distribution of assets, ensuring transparency with no hidden charges.

Any insolvent company whose directors believe it cannot pay its debts as they fall due is eligible. The directors must pass a resolution to wind up the company, and shareholders must approve it. A licensed insolvency practitioner then convenes a meeting of creditors to confirm the liquidation and appoint the liquidator.

The duration depends on the company's affairs. Simple cases with no assets may conclude within three to six months. More complex cases with substantial assets or disputes can take a year or longer. The liquidator aims to realise assets and distribute funds efficiently, but legal requirements and creditor claims can extend the timeline.

Alternatives include administration, which allows a company to restructure while protected from creditors, and a company voluntary arrangement (CVA), which is a formal agreement to repay debts over time. Sometimes an informal arrangement with creditors is possible. A licensed practitioner will assess whether any rescue option is viable before recommending liquidation.

Generally, directors are not liable for company debts, but personal liability can arise if they have given personal guarantees, traded wrongfully, or acted in breach of duty. A liquidator will investigate the conduct of directors and may pursue claims if there is evidence of misfeasance or fraudulent trading.

Employees are entitled to claim redundancy pay and other arrears from the National Insurance Fund, but the liquidator must first terminate their contracts. The liquidator will provide the necessary documentation for employees to make claims. Employees are also preferential creditors for certain amounts, but unsecured claims may not be fully paid.

The appointed liquidator sends a notice to all known creditors, advising them of the liquidation and providing a formal claim form. Creditors must submit their claims by a specified deadline to participate in distributions. The liquidator also places a notice in the Gazette and may advertise in local newspapers if required.

The liquidator's role is to take control of the company's assets, realise them for the benefit of creditors, investigate the directors' conduct, and distribute funds according to statutory priorities. They also deal with legal claims, sell assets, and ensure compliance with insolvency legislation. Their duty is to all creditors, not just the directors.

Once liquidation begins, the company must cease trading except for the purpose of a beneficial winding-up. The liquidator may continue trading for a short period to complete contracts or preserve value, but this is limited. Directors must not trade once liquidation is imminent, as this could lead to personal liability for wrongful trading.

You will need to provide the company's financial records, including accounts, bank statements, tax returns, and details of debts and assets. Also, a statement of affairs listing all creditors and their claims. The liquidator may request additional documents to investigate transactions and ensure compliance. Early preparation speeds up the process.