Professional Company LiquidatorsServing East Leeds

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

Costs vary based on the complexity of the company's affairs, asset realisation, and the number of creditors. Typically, fees range from a few thousand pounds to more for complex cases. Always obtain a clear, written quotation before engaging a liquidator.

If your company is insolvent, meaning it cannot pay its debts as they fall due, and the directors believe recovery is unlikely, then a Creditors' Voluntary Liquidation may be suitable. You must pass a board resolution and obtain shareholder approval to proceed.

The process typically takes between six and twelve months, depending on the complexity of the company's affairs. Simple cases may be concluded sooner, while those with complex asset sales or disputes can take longer. The liquidator will provide a timeline at the outset.

Once a liquidator is appointed, they take control of the company. Directors lose their powers to trade or make decisions. However, before appointment, you can continue trading if it does not worsen the position of creditors. Seek advice immediately if you are uncertain.

Alternatives include a Company Voluntary Arrangement (CVA), administration, or a formal restructuring. A CVA allows you to repay debts over time, while administration gives a breathing space to reorganise. A licensed insolvency practitioner can help you assess which option is best.

Employees are made redundant when a liquidator is appointed. They may be entitled to claim redundancy pay, unpaid wages, and holiday pay from the government's redundancy payments office. The liquidator will provide the necessary forms and guidance to affected staff.

Generally, directors are not personally liable for company debts. However, if you have given personal guarantees, acted wrongfully, or traded while insolvent, you may be held accountable. A liquidator will investigate your conduct and report any issues to the authorities.

Choose a practitioner who is licensed by a recognised professional body, such as the Insolvency Practitioners Association. Check their experience with similar companies, read reviews, and ask for a detailed proposal. You can also verify their status on the public register.

Creditors have the right to be informed of the liquidation and to attend the creditors' meeting. They can vote on the appointment of the liquidator and ask questions about the company's affairs. Secured creditors may have priority over unsecured ones.