Company Liquidators inDunblane for Directors

A licensed insolvency practitioner acts as the liquidator, realising company assets, settling creditor claims, and investigating the causes of failure. They ensure the process follows statutory requirements and report to creditors and Companies House. Their role is to achieve the best possible return for creditors while handling the administrative closure of the company.

The cost varies depending on the complexity of the case, the size of the company, and the number of assets and creditors. Creditors' voluntary liquidation is often funded from the company's assets, while a compulsory liquidation may involve court fees. A licensed practitioner will provide a clear fee structure before you commit to any process.

Voluntary liquidation is initiated by the directors or shareholders, typically through a creditors' meeting, and is the most common route for insolvent companies. Compulsory liquidation is ordered by a court, usually following a creditor's petition. The latter removes control from directors and can have more serious implications for their conduct.

A straightforward creditors' voluntary liquidation can be completed in six to twelve months, depending on asset realisation and creditor responses. More complex cases involving litigation or overseas assets may take several years. The liquidator will provide an estimated timeline after their initial review and keep creditors informed of progress.

Once a company enters liquidation, directors lose the authority to trade on its behalf. However, the liquidator may continue trading temporarily to sell stock or complete contracts if that benefits creditors. Any trading after the resolution to wind up is the liquidator's responsibility, and directors must not incur further credit without approval.

Employees are automatically dismissed once a liquidation order is made or a resolution is passed. They become preferential creditors for unpaid wages, holiday pay, and pension contributions, up to statutory limits. The liquidator will provide claims forms, and employees may also claim redundancy pay from the National Insurance Fund if the company cannot pay.

Yes, alternatives include a company voluntary arrangement (CVA) to repay debts over time, administration to allow a restructure or sale, or negotiating informal payment plans with creditors. Each option has different implications for control and future trading. An insolvency practitioner can assess which solution best fits your company's financial position and objectives.

Trading while insolvent can lead to personal liability for directors if they continue to incur credit without a reasonable prospect of repayment. This is known as wrongful trading. Directors may also face disqualification proceedings or be required to contribute to company assets from their own funds. Seeking advice early is essential to avoid these risks.

Directors can propose a creditors' voluntary liquidation by passing a board resolution and calling a meeting of shareholders. The shareholders must approve the winding up, and then creditors are invited to nominate a liquidator. However, the chosen liquidator must be a licensed insolvency practitioner, and the process must follow strict statutory procedures.

You will need to provide the company's books and records, including accounts, bank statements, tax returns, debtors and creditors lists, and details of any assets. You should also disclose any transactions with connected parties, such as directors' loans or guarantees. The liquidator will request a statement of affairs to establish the financial position.