Expert Company LiquidatorsServing Carterton Businesses

A company liquidator is a licensed insolvency practitioner who manages the closure of a company. They collect and sell assets, settle debts with creditors, and distribute any remaining funds to shareholders. They also investigate the conduct of directors and ensure the liquidation process complies with insolvency law.

The cost of liquidation varies depending on the complexity of the case, the size of the company, and the number of creditors. Typically, fees range from a few thousand pounds to more for larger or contested cases. You should obtain a fixed-fee quote from a licensed practitioner before proceeding.

Any limited company that is insolvent or cannot pay its debts as they fall due is eligible for creditors' voluntary liquidation. Solvent companies can also be wound up voluntarily if the directors and shareholders pass a resolution. The process is available to all types of limited companies, regardless of size or sector.

A straightforward creditors' voluntary liquidation typically takes between six and twelve months to complete. However, complex cases with many assets or disputed claims can take longer. The liquidator will provide an estimated timeline at the outset and keep you informed of progress throughout.

Alternatives include a company voluntary arrangement (CVA), administration, or informal negotiation with creditors. A CVA allows the company to repay debts over a period while continuing to trade. Administration provides a moratorium from creditor action, giving time to restructure or sell the business. Your liquidator will explain which option is most suitable.

Once liquidation begins, the liquidator takes control of the company and trading ceases immediately, except in limited circumstances where the liquidator may continue trading temporarily to preserve value or complete contracts. Directors lose their powers to act on behalf of the company once the liquidator is appointed.

Employees are made redundant when liquidation commences, unless the liquidator retains them temporarily to assist with the winding-up process. Employees may be entitled to claim redundancy pay, unpaid wages, holiday pay, and other statutory payments from the National Insurance Fund, which is handled by the Insolvency Service.

Generally, directors are not personally liable for company debts if they have acted properly and within the law. However, personal liability can arise if you have given personal guarantees, traded wrongfully, or misused company funds. The liquidator will investigate your conduct and may pursue recovery if there is evidence of misconduct.

Yes, a company with no assets can be liquidated, but the process may be funded by the directors or shareholders. In some cases, a compulsory liquidation can be initiated by creditors, but if there are no funds to pay the liquidator, the process may not proceed. A licensed practitioner can advise on the best course of action.

Voluntary liquidation is initiated by the directors or shareholders, typically through a creditors' voluntary liquidation when the company is insolvent. Compulsory liquidation is forced by a court order, usually following a creditor's petition. Voluntary liquidation gives directors more control over the process and is generally less adversarial.