Professional Company LiquidatorsServing East Bergholt

The cost varies based on the complexity of the company's affairs, asset values, and the level of creditor involvement. Most licensed practitioners offer a fixed fee for straightforward cases or charge based on time spent. You should always request a detailed breakdown of fees before agreeing to proceed.

A company is eligible for a creditors' voluntary liquidation if it is insolvent, meaning it cannot pay its debts as they fall due. The directors must make a statutory declaration of solvency or insolvency, and shareholders must pass a resolution to wind up the company voluntarily.

The length of the process depends on the size of the company, the number of creditors, and the complexity of realising assets. A simple case may conclude within six to twelve months, whilst a more complex liquidation with disputed claims or difficult asset sales can take several years to complete.

Before opting for liquidation, you might explore a company voluntary arrangement, which allows you to repay debts over a set period whilst continuing to trade. Other options include informal restructuring, refinancing, or selling the business as a going concern. A licensed professional can help you compare these alternatives.

Yes, directors can appoint a liquidator through a shareholders' resolution without involving the court, provided the company is insolvent and the correct procedures are followed. This is known as a creditors' voluntary liquidation, and it requires the approval of both shareholders and creditors.

Employees are made redundant once the liquidation begins, unless the liquidator retains them temporarily to help with asset realisation. Redundancy payments, unpaid wages, and holiday pay may be recoverable from the National Insurance Fund, subject to statutory limits. The liquidator will provide the necessary forms.

Directors are generally not personally liable for company debts if they have acted properly and within the law. However, personal liability can arise if there has been wrongful trading, fraudulent activity, or a breach of fiduciary duty. The liquidator will investigate the directors' conduct and report any concerns.

You must provide the liquidator with full company records, including financial statements, bank statements, debtor and creditor ledgers, asset registers, and details of any transactions made in the preceding months. The liquidator also needs a statement of affairs, which lists all assets, liabilities, and creditor claims.

Once a liquidation has commenced, the directors' powers cease, and the liquidator takes control of the company's affairs. Trading cannot continue unless the liquidator decides it is necessary to achieve a better outcome for creditors. Any continued trading must be authorised and managed by the liquidator.

The liquidator has a statutory duty to investigate the conduct of directors leading up to the liquidation. This includes reviewing transactions at an undervalue, preferences, and any evidence of misfeasance. If misconduct is found, the liquidator may take legal action to recover funds for the benefit of creditors.