Company Liquidators in Dorsefor Professional Advice

The cost varies depending on the size and complexity of the company, the number of creditors, and the work required to realise assets. A licensed practitioner will provide a fee estimate before you commit. Fees are usually paid from company assets, but you should confirm this during your initial consultation.

A Creditors' Voluntary Liquidation is available to insolvent companies where the directors propose winding up and creditors approve it at a meeting. The company must be unable to pay its debts as they fall due. Directors need to make a statutory declaration of solvency, which is not possible if the company is insolvent.

The process typically takes between six and twelve months to conclude, though complex cases may take longer. The initial meeting of creditors is usually held within a few weeks of the decision to liquidate. After that, the liquidator realises assets, investigates affairs, and distributes funds to creditors before the company is dissolved.

Once a company enters liquidation, trading must cease immediately, except where the liquidator continues trading temporarily to maximise asset value or complete contracts. Directors cannot continue normal business operations after the resolution to wind up has been passed. Any trading after that point may lead to personal liability.

Alternatives include a Company Voluntary Arrangement to repay debts over time, administration to protect the business while restructuring, or a formal restructuring plan. Each option has distinct implications for creditors and directors. A licensed professional can explain which route is most suitable based on your company's specific financial position.

Employees are automatically made redundant when a company enters liquidation, unless the liquidator retains them temporarily to assist with asset realisation. Claims for unpaid wages, holiday pay, and redundancy entitlements are preferential debts. Employees may also be able to claim certain payments from the government's redundancy payments scheme.

Directors are generally not personally liable for company debts if they have acted properly and within the law. However, personal liability can arise if you have given a personal guarantee, traded wrongfully, or acted fraudulently. A liquidator will investigate your conduct and may pursue claims against you if there is evidence of misconduct.

You must provide full company records, including accounts, bank statements, tax returns, and details of all assets and liabilities. You must also disclose any transactions with connected parties and any transfers of value made before liquidation. Failure to provide complete information can delay the process and may affect your position as a director.

Yes, you can still appoint a liquidator even if the company has no assets, although the process is often funded by directors or interested parties. A licensed practitioner will assess whether there are sufficient funds to cover the costs. If not, you may need to consider alternative procedures such as a strike-off, provided the company meets the relevant criteria.

Voluntary liquidation is initiated by the directors or shareholders through a resolution, whereas compulsory liquidation is ordered by a court, usually following a creditor's winding-up petition. In compulsory liquidation, the official receiver or an appointed insolvency practitioner acts as liquidator. The procedures differ in terms of control, timescales, and the level of court involvement.