Professional Company LiquidatorsServing Brixham Businesses

A company liquidator is a licensed insolvency practitioner who takes control of a company that is being wound up. They realise the company's assets, agree claims from creditors, and distribute any funds in the statutory order. They also investigate the conduct of directors and report to the relevant authorities if necessary.

The cost of a creditors' voluntary liquidation typically ranges from £4,000 to £8,000 plus VAT, depending on the complexity of the case. The liquidator's fee is usually paid from the company's assets, but if there are insufficient assets, directors may need to fund the process personally.

A company liquidator can be appointed by the shareholders through a special resolution, or by the court through a winding-up order. In most cases, directors propose the appointment of a liquidator when they realise the company cannot pay its debts and they call a meeting of shareholders and creditors.

The process involves a board meeting where the directors confirm insolvency, then a shareholder meeting to pass a resolution for voluntary winding up. A creditors' meeting is held to confirm the appointment of the liquidator. The liquidator then takes control of the company's affairs and begins the realisation of assets.

The initial appointment of the liquidator can happen within a few weeks of the decision to liquidate. The full process, including realising assets and distributing funds, typically takes between six and twelve months. However, complex cases involving litigation or overseas assets can take longer.

Yes, there are alternatives such as a company voluntary arrangement (CVA), administration, or a formal restructuring. A CVA allows the company to continue trading while paying off debts over a period of time. Administration provides a moratorium from creditors while a rescue plan is attempted. Each option has its own advantages and disadvantages.

Directors must act in the interests of creditors rather than shareholders once the company is insolvent. They must avoid wrongful trading, which means continuing to trade when they know there is no reasonable prospect of avoiding liquidation. They must also not make preferential payments to certain creditors over others.

Yes, it is possible to liquidate a company with no assets, but the costs of the liquidation must be met. If the company has no assets to pay the liquidator's fees, the directors may need to fund the process personally. Alternatively, the company may be struck off the register if it is not trading and has no assets.

When a company enters liquidation, all employees are automatically dismissed. They may be able to claim redundancy pay, unpaid wages, and holiday pay from the National Insurance Fund. The liquidator will provide them with the necessary forms and information about making a claim.

You should choose a licensed insolvency practitioner who is authorised by a recognised professional body, such as the Insolvency Practitioners Association or the ICAEW. Look for someone who has experience with companies of a similar size and in a similar sector. It is also important to have a clear fee structure and good communication.