Professional Company LiquidatorsServing Drury Lane

The cost varies based on company complexity, asset value, and creditor structure. Most licensed practitioners offer a fixed fee or an hourly rate, but you should request a detailed quote before proceeding. Fees are often paid from company assets, and in some cases, a director may need to contribute personally if there are insufficient funds.

Any limited company that is insolvent or cannot pay its debts as they fall due may be eligible for creditors’ voluntary liquidation. For solvent companies, a members’ voluntary liquidation is appropriate. A licensed insolvency practitioner will assess your balance sheet and cash flow to determine which route fits your circumstances.

The process begins with an initial consultation to review your financial position. If liquidation is appropriate, the director or shareholders call a meeting to pass a resolution, and a licensed insolvency practitioner is formally appointed. The liquidator then takes control of assets, notifies creditors, and manages the distribution of proceeds.

A straightforward creditors’ voluntary liquidation may complete in six to twelve months, while more complex cases with asset sales or legal disputes can take longer. The timeline depends on the speed of asset realisation and the cooperation of all parties. Your liquidator will provide a realistic estimate after the initial review.

Yes, but only until the formal resolution is passed and the liquidator is appointed. During this period, you must avoid preferential payments or transferring assets, as this could be considered wrongful trading. Once the liquidator takes office, they assume control, and you must cease your director duties.

Alternatives include a company voluntary arrangement (CVA) to restructure debts, administration to give breathing space, or informal negotiations with creditors. For solvent companies, striking off is a simpler option. A licensed practitioner can explain the pros and cons of each based on your specific financial situation and long-term goals.

Directors must cooperate fully with the liquidator, provide all company records and accounts, and disclose any transactions that may be scrutinised. They must also avoid taking any action that could worsen creditor positions. Failure to comply can lead to personal liability, disqualification, or even criminal prosecution in severe cases.

Generally, no, as limited liability protects directors from personal responsibility for company debts. However, personal liability may arise if you have given personal guarantees, engaged in wrongful trading, or misused company funds. A licensed practitioner will review your conduct and advise on any potential exposure before you proceed.

Look for a licensed insolvency practitioner who is regulated by a recognised professional body, such as the Insolvency Practitioners Association or the Institute of Chartered Accountants. Check their experience with similar companies, read client testimonials, and ask for a clear fee structure. Always verify their credentials before appointing them.

Employees are made redundant when the company enters liquidation, and they become preferential creditors for unpaid wages, holiday pay, and pension contributions. The liquidator will handle redundancy claims and guide employees on claiming from the National Insurance Fund. The process aims to treat employees fairly and in line with employment law.