Company Liquidators in Drymenfor Professional Guidance

The cost varies based on the complexity of your company's affairs, but most fixed-fee packages start around £1,500 plus VAT for a straightforward creditors' voluntary liquidation. Always request a detailed quote before engaging a liquidator, and ensure there are no hidden disbursements or additional charges.

Your company must be insolvent, meaning it cannot pay its debts as they fall due, or its liabilities exceed its assets. A licensed insolvency practitioner will assess your balance sheet and cash flow to confirm eligibility and recommend the most appropriate procedure, whether that is a creditors' voluntary liquidation or a compulsory liquidation.

The process begins with an initial consultation, followed by a meeting of shareholders to pass a resolution for voluntary liquidation. A licensed insolvency practitioner is then appointed as liquidator, who takes control of assets, notifies creditors, and distributes proceeds according to statutory priority.

A typical creditors' voluntary liquidation takes between six and twelve months to conclude, depending on the complexity of the asset base and the number of creditors. Simple cases with minimal assets may be completed faster, whilst cases involving litigation or complex asset recovery can take longer.

Once the decision to liquidate is made, directors must stop trading except where the liquidator permits continued trading to preserve value or complete work in progress. Trading beyond the point of insolvency can lead to personal liability for wrongful trading, so always seek advice before making any commitments.

Alternatives include a company voluntary arrangement (CVA) to repay debts over time, administration to protect the business from creditors, or a formal restructuring of the balance sheet. For solvent companies, a members' voluntary liquidation is used to close a business that has no debts.

Employees are made redundant on the date of liquidation, and they become preferential creditors for unpaid wages, holiday pay, and pension contributions. The liquidator will provide the necessary documentation for employees to claim statutory redundancy payments from the National Insurance Fund.

Generally, no, because a limited company provides a shield of limited liability. However, personal liability can arise if you have given personal guarantees, misused funds, or engaged in fraudulent or wrongful trading. The liquidator will investigate your conduct and may pursue claims if appropriate.

For a creditors' voluntary liquidation, you can appoint a liquidator by passing a shareholder resolution and then holding a meeting of creditors. For a compulsory liquidation, a creditor must petition the court, and the court will appoint an official receiver or an insolvency practitioner.

You must provide the company's statutory books, financial records, bank statements, asset registers, and details of all creditors and debtors. You should also disclose any transactions with directors or connected parties within the last two years, as these may be scrutinised by the liquidator.