Professional Company LiquidatorsServing Cuffley Businesses

The cost varies depending on the complexity of the company’s affairs, the number of creditors, and the value of assets. Most licensed insolvency practitioners will provide a fixed fee quote after an initial review. The fee is typically paid from the company’s assets, but if assets are insufficient, directors may need to fund the process personally.

Directors can propose a Creditors’ Voluntary Liquidation if the company is insolvent. Shareholders must pass a resolution to wind up the company, and creditors must approve the appointment at a formal meeting. Alternatively, a creditor can petition the court to place the company into compulsory liquidation if a statutory demand has been ignored.

The process begins with a board meeting where directors confirm insolvency. A formal resolution is then passed by shareholders, and a statement of affairs is prepared. A meeting of creditors is held to confirm the appointment of the liquidator. The liquidator then takes control of assets, investigates affairs, and distributes funds to creditors.

A straightforward Creditors’ Voluntary Liquidation may be completed within six to twelve months. However, the timeline can extend if there are complex asset sales, legal disputes, or investigations into director conduct. The liquidator must also deal with tax investigations and final accounts, which can add time to the process.

Yes, alternatives include a Company Voluntary Arrangement, which is a formal agreement to pay creditors over a period of time. Administration is another option that gives a company protection from creditors while a rescue plan is attempted. Informal arrangements with creditors, such as payment plans, may also be possible if the company is fundamentally viable.

Employees are automatically made redundant when a company enters liquidation. They may be able to claim statutory redundancy pay, unpaid wages, holiday pay, and notice pay from the National Insurance Fund. The liquidator will provide employees with the necessary forms and guidance on how to make these claims.

Directors are generally not personally liable for company debts, but there are exceptions. If a director has signed a personal guarantee, they will be liable for that specific debt. Liability can also arise if there has been wrongful trading, fraudulent trading, or a breach of fiduciary duty, such as using company funds for personal benefit.

The liquidator is an insolvency practitioner whose role is to take control of the company’s assets, realise their value, and distribute the proceeds to creditors in the correct order of priority. They also investigate the conduct of directors, report to creditors, and ensure that the company is formally dissolved at the end of the process.

Yes, a company with no assets can still be liquidated, but the costs of the liquidation must be met by someone, usually the directors. If directors are unwilling to fund the process, the company can be struck off the register instead, provided it meets certain criteria, such as having no recent trading activity.

You will need to provide the company’s up-to-date accounts, a list of all creditors and their amounts, details of any assets owned by the company, and information about any ongoing contracts or legal claims. You will also need to prepare a statement of affairs, which summarises the company’s financial position.