Professional Company LiquidatorsServing Dartmouth Businesses

A company liquidator is a licensed insolvency practitioner who winds down a company's affairs. They collect and sell assets, settle creditor claims, and distribute any remaining funds to shareholders. They also investigate the directors' conduct and ensure that all legal requirements are met before the company is dissolved.

The cost varies depending on the complexity of the case, the size of the company, and the amount of asset realisation required. Typically, fees are paid from the company's assets, but if there are no assets, creditors may agree to fund the process. A licensed professional will provide a clear fee estimate before you proceed.

Compulsory liquidation is forced by a court order, usually after a creditor presents a winding-up petition. Voluntary liquidation is initiated by the company's directors or shareholders. Creditors' voluntary liquidation (CVL) is common when a company is insolvent, while members' voluntary liquidation (MVL) is used for solvent companies.

Once a liquidator is appointed, they take control of the company. Directors lose their powers, and trading ceases except for limited activities that the liquidator permits to protect the value of assets. You cannot continue normal trading without the liquidator's consent, and doing so could lead to personal liability.

Alternatives include a company voluntary arrangement (CVA), administration, or formal restructuring. A CVA allows you to repay debts over a period while keeping the company trading. Administration provides a moratorium from creditors while a plan is developed. A licensed professional can help you assess which option is best.

The process typically takes between six and twelve months, but complex cases may take longer. The liquidator must realise assets, agree claims, and distribute funds. Once completed, the company is struck off the register. The timeline depends on the cooperation of directors and creditors, and the complexity of the financial affairs.

In most cases, directors are not personally liable for company debts, as limited liability protects them. However, if you have given personal guarantees, you may be responsible for those specific debts. Additionally, if wrongful trading or fraudulent activity is found, you could face personal liability. Always seek advice early.

Wrongful trading occurs when a director continues to trade while knowing the company cannot avoid insolvency, without taking reasonable steps to minimise losses to creditors. To avoid it, you must monitor financial health, seek professional advice at the first sign of trouble, and act in the best interests of creditors.

Yes, directors can call a shareholders' meeting to pass a resolution for voluntary liquidation. For an insolvent company, you would then convene a meeting of creditors to approve the appointment of a liquidator. It is advisable to consult a licensed insolvency practitioner beforehand to ensure the process is correctly followed.

Employees are made redundant when the company enters liquidation. They may be entitled to claim statutory redundancy pay, unpaid wages, and holiday pay from the National Insurance Fund. The liquidator will provide the necessary documentation, and employees are treated as preferential creditors for certain claims.