Company Liquidators in DurhamGuiding You Through Insolvency

A company liquidator is a licensed insolvency practitioner who manages the closure of a company. They realise assets, settle creditor claims, and distribute any remaining funds to shareholders. They also investigate the directors' conduct and report to relevant authorities if necessary.

The cost of liquidation varies depending on the complexity of the company's affairs. Typically, fees range from a few thousand pounds for a straightforward creditors' voluntary liquidation to more for complex cases. You should obtain a fixed-fee quote from a licensed professional before proceeding.

You are eligible for a creditors' voluntary liquidation if your company is insolvent, meaning it cannot pay its debts as they fall due. The directors must pass a resolution to wind up the company, and then a meeting of creditors is held to confirm the appointment of the liquidator.

The length of the liquidation process depends on the complexity of the company's affairs. A straightforward creditors' voluntary liquidation may be completed in six to twelve months, while more complex cases can take longer. The liquidator will provide an estimated timeline at the outset.

A members' voluntary liquidation is used for solvent companies where directors can make a statutory declaration of solvency. A creditors' voluntary liquidation is for insolvent companies. In a members' voluntary liquidation, shareholders appoint the liquidator, whereas in a creditors' voluntary liquidation, creditors have a say.

Yes, you can liquidate a company with no assets. This is often done through a creditors' voluntary liquidation, even if there are no assets to distribute. The liquidator will investigate the company's affairs and report to creditors. If there are no assets, the liquidation may be funded by the directors or by the official receiver.

When a company is liquidated, employees are made redundant. They may be entitled to claim redundancy pay, unpaid wages, and holiday pay from the National Insurance Fund. The liquidator will provide them with the necessary forms and guidance on how to make a claim.

Once a company enters liquidation, trading must cease immediately. The liquidator takes control of the company's affairs. However, the liquidator may continue trading for a short period to sell stock or complete contracts, but this is done under the liquidator's authority, not the directors'.

After liquidation begins, directors lose control of the company. They must cooperate fully with the liquidator, providing all books and records, and answering any questions. Directors may also be required to attend interviews with the liquidator to explain the company's affairs.

Yes, there are alternatives to liquidation, such as administration, company voluntary arrangement, or informal arrangements with creditors. These options may allow the company to continue trading or to achieve a better return for creditors. A licensed insolvency practitioner can advise on the most suitable course of action.