Professional Company Liquidators inEast Ayrshire for Your Business

The cost of a creditors' voluntary liquidation (CVL) typically ranges from £4,000 to £8,000 plus VAT, depending on the complexity of the company's affairs. This fee covers the liquidator's work, statutory advertising, and disbursements. A licensed insolvency practitioner will provide a fixed fee quote before you commit, so you know the full cost upfront.

Any director of a company that is insolvent—meaning it cannot pay its debts as they fall due—can appoint a liquidator. The process usually starts with a board resolution to call a meeting of shareholders and creditors. You must be a director of a limited company, not a sole trader or partnership, to use this formal procedure.

The initial meeting of creditors typically occurs within two to three weeks of instructing a liquidator. Once appointed, the liquidator's work—realising assets, agreeing claims, and distributing funds—can take six to twelve months, depending on the complexity. The company is dissolved at the end of the process, which usually occurs after the final meeting.

Before opting for liquidation, you might explore a company voluntary arrangement (CVA) to repay debts over time, or formal restructuring. If the business is viable but has cash flow issues, a CVA could allow you to continue trading. Sometimes, a sale of the business as a going concern is possible, which can save jobs and maximise returns.

Employees are automatically made redundant once a liquidator is appointed. They become preferential creditors for unpaid wages (up to a statutory cap), holiday pay, and pension contributions. The liquidator will assist employees in claiming any unpaid entitlements from the National Insurance Fund, which provides a safety net for redundancy payments.

No, once a liquidator is appointed, they take control of all company assets. You cannot retain any assets unless you purchase them from the liquidator at market value. If you have personally guaranteed a loan secured on an asset, the lender may repossess it, but the liquidator will handle the process fairly.

A licensed insolvency practitioner acts as the liquidator, taking control of the company's affairs, realising assets, and distributing funds to creditors. They are regulated and must act impartially. Their duties include investigating the directors' conduct, reporting to creditors, and ensuring compliance with insolvency law. They also provide advice on the best course of action.

If you have acted honestly and fulfilled your duties, you will not be personally liable for company debts. However, if you have traded wrongfully or fraudulently, or given personal guarantees, you could be pursued. The liquidator will investigate your conduct, and any misfeasance could lead to personal liability or disqualification proceedings.

Yes, you can liquidate a company that is trading but insolvent. If the directors believe the company cannot continue trading, they can call a meeting to pass a resolution for voluntary liquidation. It is important to act promptly to avoid wrongful trading claims, which could make directors personally responsible for debts incurred after the point of insolvency.

You will need to provide the company's books and records, including accounts, bank statements, debtors and creditors lists, and details of any assets. The liquidator will also require a statement of affairs, which lists the company's assets and liabilities. This information helps the liquidator assess the financial position and plan the liquidation efficiently.