Professional Company LiquidatorsServing Eastbourne Businesses

A licensed insolvency practitioner acts as the liquidator, taking control of the company’s assets, realising them for creditors, investigating the directors’ conduct, and ensuring the company is struck off the register. They also handle creditor communications and statutory reporting.

Costs vary based on the complexity of the case, the number of creditors, and the value of assets. Typically, fees are drawn from the company’s assets, but if assets are insufficient, directors may need to fund the process personally. Always obtain a fixed-fee quote upfront.

Any limited company that is insolvent, meaning it cannot pay its debts as they fall due, can enter creditors’ voluntary liquidation. A director or a creditor can initiate the process. A licensed insolvency practitioner must confirm that liquidation is the appropriate course.

A creditors’ voluntary liquidation typically takes between six and twelve months to conclude, depending on the complexity of realising assets and resolving creditor claims. The liquidator must file final accounts with Companies House, which can extend the timeline.

Once a winding-up order is made or a creditors’ voluntary liquidation is approved, directors lose control and cannot continue trading. However, before that point, directors may trade while solvent, but must not take on new credit if they know the company is insolvent.

Alternatives include a company voluntary arrangement, administration, or informal arrangements with creditors. A licensed professional can assess whether a turnaround plan is viable, or whether a formal insolvency procedure is the most effective way to protect stakeholder interests.

Employees are automatically made redundant once the company enters liquidation. They may claim statutory redundancy pay, unpaid wages, and holiday pay from the National Insurance Fund. The liquidator provides them with the necessary claim forms and guidance.

Generally, limited liability protects directors from personal liability for company debts. However, if you have given personal guarantees, acted fraudulently, or traded wrongfully, you may be pursued personally. The liquidator will investigate your conduct and may seek compensation.

You must convene a board meeting to pass a resolution to wind up the company, then call a meeting of creditors to nominate a liquidator. A licensed insolvency practitioner can guide you through the required paperwork and statutory forms.

Directors must cooperate fully with the liquidator, providing all company records, accounts, and explanations. They must also complete a statement of affairs and may be required to attend interviews. Failure to cooperate can lead to personal liability or disqualification.