Professional Company Liquidatorsin Eaton Bray

A company liquidator is a licensed insolvency practitioner who manages the closure of a company. They collect and sell assets, settle debts with creditors, and distribute any remaining funds to shareholders. They also investigate the directors' conduct and ensure that all legal requirements are met during the liquidation process.

The cost varies depending on the complexity of your company's affairs, the number of creditors, and the value of assets. Typically, fees are taken from the company's assets, but if there are no assets, you may need to fund the process personally. Always ask for a fixed fee quote upfront to avoid surprises.

A creditors' voluntary liquidation is used when a company is insolvent and cannot pay its debts. A members' voluntary liquidation is used when a company is solvent and shareholders wish to close it. The key difference is solvency: in an MVL, the company can pay all debts in full, usually within 12 months.

The length of time depends on the type of liquidation and the complexity of the case. A simple members' voluntary liquidation can be completed in a few months, while a creditors' voluntary liquidation may take six to twelve months or longer if there are complex asset sales or legal disputes.

No, once a winding-up order is made or a creditors' meeting is called, the directors' powers cease. You must not trade further unless the liquidator gives permission. Continuing to trade after insolvency can lead to personal liability for wrongful trading.

Alternatives include a company voluntary arrangement, administration, or informal arrangements with creditors. If the company is viable but struggling with cash flow, an CVA might allow you to repay debts over time. Administration provides a moratorium from creditors while a restructuring is attempted.

In most cases, directors are not personally liable for company debts, but there are exceptions. If you have given personal guarantees, you will be liable for those specific debts. Also, if you have traded wrongfully or fraudulently, you may be held personally responsible for some liabilities.

Employees are made redundant when a company enters liquidation. They may be entitled to redundancy pay, notice pay, and unpaid wages from the National Insurance Fund. The liquidator will provide them with the necessary forms to make a claim. Employees who are owed money are preferential creditors.

Yes, but you will need to fund the liquidation yourself. If the company has no assets to cover the liquidator's fees, you may need to pay a deposit or agree to a payment plan. In some cases, a director may apply for a compulsory liquidation, but this is less common.

Look for a licensed insolvency practitioner who is regulated by a recognised professional body, such as the Insolvency Practitioners Association or the ICAEW. Check their experience with similar cases, read client testimonials, and ensure they offer a clear fee structure. Always ask for references.