Professional Company LiquidatorsServing Chobham

A company liquidator is a licensed insolvency practitioner who manages the closure of a company that cannot pay its debts. They take control of assets, sell them, distribute proceeds to creditors, and ensure legal obligations are met. They also investigate the conduct of directors and report to relevant authorities.

The cost of company liquidation varies depending on the complexity of the case, the size of the company, and the number of creditors. Fees are typically paid from the company's assets, but if there are insufficient assets, directors may need to fund the process personally. Always obtain a clear fee quote before proceeding.

Any limited company that is insolvent – meaning it cannot pay its debts as they fall due – is eligible for creditors' voluntary liquidation. Directors can also apply for compulsory liquidation if a court orders it. A licensed practitioner can confirm your eligibility and advise on the most appropriate route.

The length of the process depends on the complexity of the company's affairs. A straightforward creditors' voluntary liquidation may complete within six to twelve months, but cases with complex asset sales or legal disputes can take longer. Your liquidator will provide a realistic timeline based on your specific situation.

Alternatives include administration, which aims to rescue the business as a going concern, and a company voluntary arrangement, which allows you to repay debts over time. There is also informal restructuring with creditors. Each option has different implications for directors and creditors, so professional advice is essential.

Once liquidation begins, the liquidator takes control of the company, and directors lose their powers to trade. However, the liquidator may continue trading for a short period to complete work in progress or sell assets. Continuing to trade while insolvent before liquidation could lead to personal liability for wrongful trading.

Employees are entitled to claim redundancy pay, unpaid wages, and holiday pay from the National Insurance Fund. The liquidator will dismiss employees and provide the necessary documentation for claims. Employees who are retained to assist the liquidator may be paid from the company's assets as an expense of the liquidation.

Directors are generally not personally liable for company debts if they have acted properly. However, personal liability can arise if you have given personal guarantees, traded wrongfully, or misused company funds. A liquidator will investigate your conduct and may seek recovery if there has been misconduct.

To start a creditors' voluntary liquidation, you must call a board meeting and pass a resolution to wind up the company. Then, you convene a meeting of creditors within 14 days. A licensed insolvency practitioner must be appointed as liquidator. You can also seek a court order for compulsory liquidation if you cannot act voluntarily.

Creditors have the right to be informed of the liquidation, to vote on the appointment of the liquidator, and to receive reports on the progress of the case. They may also form a liquidation committee to oversee the liquidator's actions. Secured creditors have priority over unsecured creditors in the distribution of assets.