Company Liquidators inDalkeith

A licensed insolvency practitioner acts as liquidator, taking control of the company's assets, realising them for the benefit of creditors, investigating the directors' conduct, and ensuring that the company is dissolved properly. They also handle all correspondence with creditors and manage the legal requirements of the liquidation process.

The cost varies depending on the size and complexity of the company, the number of creditors, and the condition of the company's records. Most liquidators charge a fixed fee for straightforward cases, but larger or more complex liquidations may be charged on a time basis. You should always obtain a written quote before proceeding.

Creditors' voluntary liquidation is initiated by the directors when the company is insolvent but the directors choose to act. Compulsory liquidation is forced by a creditor through a court order, often following a winding-up petition. The process and the level of director involvement differ significantly between the two routes.

Once a decision has been made to liquidate, you should stop taking on new credit or incurring further liabilities. Trading while insolvent can lead to personal liability for wrongful trading. The liquidator will advise on the correct point at which to cease trading, which is usually immediately before the liquidation meeting.

Employees are made redundant when the company ceases trading. The liquidator will assist employees in claiming redundancy pay, unpaid wages, holiday pay, and other statutory entitlements from the National Insurance Fund. The liquidator also provides a form (RP1) to help employees make these claims.

A straightforward creditors' voluntary liquidation typically takes between six and twelve months to complete, depending on how quickly assets can be sold and the company's affairs finalised. Complex cases with many creditors or legal issues can take longer. The liquidator will provide a realistic timeline at the outset.

Alternatives include a company voluntary arrangement (CVA), which allows the company to repay debts over a period while continuing to trade, or an administration process, which may rescue the company as a going concern. Sometimes a formal restructuring or a sale of the business as a going concern can preserve jobs and value.

Yes, the directors are expected to attend the creditors' meeting to answer questions about the company's affairs. If you cannot attend, you can appoint a proxy to act on your behalf. The meeting is usually chaired by the insolvency practitioner and provides creditors with an opportunity to ask about the company's failure.

Directors must cooperate fully with the liquidator, provide all company records and accounts, and disclose all assets and liabilities. They must not conceal or destroy any company property or falsify records. Failure to comply can result in personal liability, disqualification as a director, or even criminal prosecution.

Yes, you can start a new company after liquidation, but there may be restrictions. If you have been disqualified as a director, you cannot act as a director without court permission. Also, you should be aware of the rules regarding 'phoenix' companies, where the same business is continued after liquidation, which can attract scrutiny from creditors and regulators.