Company Liquidators in East LothianExpert Guidance for East Lothian

The cost varies depending on the complexity of the case, the size of the company, and the type of liquidation. A licensed insolvency practitioner will provide a fee quote after an initial assessment. Creditors' voluntary liquidation is often funded from the company's assets, while members' voluntary liquidation has fixed fees that you should confirm upfront.

A company liquidator can be appointed by the directors, shareholders, or creditors. For a creditors' voluntary liquidation, the directors must call a meeting of shareholders to pass a resolution, and then a separate meeting of creditors is held to confirm the appointment. The court can also appoint a liquidator in compulsory cases.

The duration depends on the complexity of the company's affairs. A straightforward creditors' voluntary liquidation might be completed in six to twelve months, while a more complex case with asset realisation or legal disputes could take several years. The liquidator will provide an estimated timeline after the initial review.

Alternatives include a company voluntary arrangement (CVA), which allows you to repay debts over time, or administration, which gives a breathing space while a restructuring is attempted. Sometimes a formal restructuring plan or a sale of the business as a going concern can save jobs and value, so it is worth exploring these with a professional.

Once a liquidator is appointed, the directors' powers cease, and the liquidator takes control of the company's assets. Trading may continue only if the liquidator decides it is beneficial for the realisation of assets, for example to complete existing orders. You must not continue trading without the liquidator's consent.

Employees are automatically dismissed when a company enters liquidation, unless the liquidator retains them to assist with the winding-up process. They may be entitled to claim redundancy pay, unpaid wages, and holiday pay from the National Insurance Fund, but the liquidator will provide the necessary forms and guidance.

The liquidator's role is to collect and realise the company's assets, investigate the affairs of the company, and distribute the proceeds to creditors in the statutory order. They also have a duty to report any misconduct by directors to the relevant authorities, and to ensure that the liquidation is conducted in accordance with insolvency law.

Yes, but there are restrictions. If the company went into compulsory liquidation or a creditors' voluntary liquidation, the director may be subject to a disqualification order or undertaking. In some cases, a director cannot act as a director of another company without court permission. It is advisable to seek legal advice before starting a new venture.

Members' voluntary liquidation is used when a company is solvent and can pay its debts in full within twelve months. Creditors' voluntary liquidation is for insolvent companies, where the directors call a meeting of creditors to appoint a liquidator. The latter involves a statement of affairs and a creditors' meeting, and the liquidator must act in the interests of all creditors.

Look for a practitioner who is licensed by a recognised professional body, such as the Insolvency Practitioners Association or the Institute of Chartered Accountants. Check their experience with companies of a similar size and sector, and ask for references. You can also verify their licence on the public register.