Company Liquidators inCraghead for Directors

The cost of a creditors' voluntary liquidation is usually met from the company's assets, not from your personal pocket. Fees are agreed with creditors and are based on the complexity of the case. A licensed insolvency practitioner will provide a clear fee estimate before you proceed, ensuring you understand all costs involved.

Any director of a limited company that is insolvent can call a board meeting and propose a creditors' voluntary liquidation. You must be able to show that the company cannot pay its debts as they fall due. A licensed practitioner will confirm eligibility and guide you through the formal process.

The initial meeting with creditors usually happens within two to four weeks of the decision to liquidate. Once the liquidator is appointed, they will sell assets and settle claims. Most cases are concluded within twelve months, although complex situations may take longer to resolve fully.

Once a liquidator is appointed, all company assets are placed under their control. You cannot keep any asset that belongs to the company unless you buy it back at market value. Personal assets are unaffected, but you must not transfer company property before liquidation begins.

Depending on your situation, a company voluntary arrangement (CVA) may allow you to repay debts over time. Administration can also provide a moratorium from creditors. A licensed practitioner will assess your cash flow and forecasts to determine whether a rescue option is viable before recommending liquidation.

Employees are made redundant when a liquidator is appointed. They may be entitled to claim statutory redundancy pay, unpaid wages, and holiday pay from the National Insurance Fund. The liquidator will provide each employee with the necessary forms and guidance on how to make a claim.

If the company is limited by shares, you are generally not personally liable for its debts. However, if you have given a personal guarantee or acted wrongfully, you could be pursued. A licensed practitioner will review your conduct and advise you on any potential exposure you may have.

A licensed insolvency practitioner acts in the interests of all creditors. They take control of the company's assets, investigate its affairs, and ensure that funds are distributed fairly. They also examine the directors' conduct and report any concerns to the appropriate authorities, ensuring the process is transparent.

You should first speak with a licensed insolvency practitioner. They will review your financial position and confirm whether liquidation is the right course. If it is, they will advise on the necessary board resolution and help you convene a meeting of creditors to formally appoint the liquidator.

You can continue trading until the creditors' meeting takes place, but you must not take on new credit or dispose of assets. The practitioner will advise you on your duties during this period. Continuing to trade when you know the company is insolvent could lead to personal liability for wrongful trading.