Professional Company LiquidatorsServing East Brent

A company liquidator is an insolvency professional who takes control of a company that is closing down. They sell assets, settle creditor claims, investigate the directors' conduct, and distribute any remaining funds according to legal priority. Their duty is to maximise returns for creditors while ensuring compliance with insolvency law.

Liquidation costs vary depending on the size and complexity of the company. Typically, fees are paid from the company's assets before creditors receive any distribution. For a simple creditors' voluntary liquidation, fees may start around a few thousand pounds, but you should obtain a fixed fee quote from a licensed practitioner before proceeding.

Creditors' voluntary liquidation (CVL) is initiated by the directors when the company is insolvent, and shareholders pass a resolution to wind up. Compulsory liquidation is forced by a creditor through a court order. In a CVL, the directors choose the liquidator, whereas in compulsory liquidation the court appoints one.

A simple creditors' voluntary liquidation may complete within six to twelve months, but complex cases with numerous assets or legal disputes can take several years. The liquidator must file final accounts with the authorities and notify creditors of the closure, which adds time to the process.

Yes, it is possible to liquidate a company with no assets, but the costs of liquidation must be covered by the directors or shareholders personally. In some cases, a director may apply for a striking-off instead, which is cheaper, but this route does not provide the same protection against future creditor claims.

Employees are made redundant when a company enters liquidation. They may claim unpaid wages, holiday pay, and redundancy pay from the government's National Insurance Fund, but the liquidator will provide them with the necessary forms. The liquidator also handles any preferential claims from employees before other creditors.

Administration is a rescue process that aims to save the company as a going concern, whereas liquidation ends the company's existence. In administration, a licensed practitioner takes over management to restructure the business or sell it as a whole. Liquidation is used when rescue is not possible.

Yes, a solvent company can be closed through a members' voluntary liquidation (MVL), which is used to distribute surplus assets to shareholders in a tax-efficient way. This process requires a declaration of solvency from the directors and typically takes a few months to complete.

Directors must cooperate fully with the liquidator, provide all company records and accounts, and disclose any transactions that occurred in the period before liquidation. They must also avoid wrongful trading, which means continuing to trade when they know the company cannot avoid insolvency.

Yes, alternatives include negotiating a company voluntary arrangement (CVA) with creditors, restructuring the business, or seeking a formal repayment plan. These options may allow the company to continue trading, but they require the agreement of creditors and are not always suitable for every situation.