Professional Company Liquidators inBuzzard for Director Advice

Costs vary depending on the complexity of the company’s affairs, the number of creditors, and the value of assets. Most licensed insolvency practitioners charge a fixed fee for straightforward cases, often between £4,000 and £6,000 plus VAT, but this is always agreed in advance. You should request a written quotation before any work begins.

Eligibility depends on whether the company is solvent or insolvent. For a creditors’ voluntary liquidation, the company must be unable to pay its debts as they fall due. For a members’ voluntary liquidation, the company must be solvent and able to pay all debts within twelve months. A licensed practitioner will confirm the correct route.

The process begins with a board meeting to pass a resolution that the company cannot continue due to its liabilities. A statement of affairs is prepared, and within fourteen days a meeting of creditors is held. Creditors vote to confirm the liquidator’s appointment. The liquidator then realises assets, investigates affairs, and distributes funds to creditors.

A straightforward creditors’ voluntary liquidation often concludes within six to twelve months. However, the exact duration depends on the complexity of asset realisation, any legal claims against former directors, and the time needed to finalise tax matters with HMRC. A simple case with no assets may close sooner, whilst a complex case could take longer.

Alternatives include a company voluntary arrangement, which allows a company to repay debts over an agreed period, or formal restructuring such as a scheme of arrangement. Administration may also be used to give a company breathing space from creditors. A licensed insolvency practitioner can explain which option is most suitable based on the company’s specific financial position.

Once a company enters liquidation, the liquidator takes control of the company’s affairs, and directors cease to have authority to trade. However, before liquidation is formally approved, directors may continue trading if they act in the best interests of creditors. Continuing to trade whilst insolvent without seeking professional advice could lead to personal liability for wrongful trading.

Employees are made redundant when the company enters liquidation. They may be entitled to claim statutory redundancy pay, unpaid wages, holiday pay, and notice pay from the National Insurance Fund, which is administered by the Insolvency Service. The liquidator provides employees with the necessary claim forms and guidance on how to submit them.

No, you do not have to attend in person. Creditors’ meetings can be held virtually or by proxy, and in many cases the meeting is deemed held without a physical gathering. You can submit your vote online or by post. The liquidator will explain the options when the meeting is convened.

Directors must cooperate fully with the liquidator, provide all company records and accounts, and disclose any transactions that may be void or preferential. Directors also have a duty to avoid wrongful trading and must not conceal assets or destroy records. Failure to comply can result in personal liability, disqualification, or in severe cases, criminal prosecution.

Yes, it is possible to liquidate an insolvent company with no assets, but the costs of liquidation must be funded. This is often done through director funding or by using the company’s remaining funds if any exist. The liquidator will need to confirm that there are sufficient funds to cover their fees and disbursements before accepting the appointment.