Professional Company Liquidators inEdginswell Park for Directors

The cost varies depending on the complexity of the company's affairs, the number of creditors, and the volume of assets to be realised. A licensed insolvency practitioner will provide a fixed fee quotation after an initial assessment of your company's financial records and the anticipated workload involved.

Any limited company that is insolvent, meaning it cannot pay its debts as they fall due, may be eligible for a creditors' voluntary liquidation. The directors must be prepared to swear a statement of affairs and convene a meeting of shareholders to pass the necessary resolutions.

The initial meeting with creditors typically occurs within two to four weeks after the shareholders' resolution. The liquidator then begins their work, which can take anywhere from six months to two years to complete, depending on the complexity of realising assets and investigating the company's affairs.

A compulsory liquidation is ordered by a court, usually following a creditor's petition. A voluntary liquidation is initiated by the company's shareholders through a resolution. In a creditors' voluntary liquidation, the creditors then take control of the process and appoint the liquidator.

Once the shareholders have passed the resolution to wind up the company, trading must cease immediately, except where the liquidator specifically authorises continued trading to complete work in progress or to sell assets as a going concern. Continuing to trade without authority can lead to personal liability.

Employees are automatically dismissed when a liquidation order is made or when the resolution is passed. They become preferential creditors for certain arrears of wages and holiday pay. The liquidator will provide them with the necessary forms to claim from the National Insurance Fund for any unpaid entitlements.

Yes, alternatives include a company voluntary arrangement, which allows you to repay debts over a period of time, or formal administration, which may allow the business to continue trading. Sometimes a simple informal arrangement with creditors or a structured wind-down can be achieved without a formal procedure.

If you have acted honestly and fulfilled your statutory duties, the main consequence is usually the loss of your company. However, if you have traded wrongfully, misused company funds, or given preferential treatment to certain creditors, you may face personal liability, disqualification proceedings, or even criminal prosecution.

You should select a licensed insolvency practitioner who is authorised by a recognised professional body. It is important to consider their experience with companies of a similar size and sector, their communication style, and their willingness to explain the process clearly. Always check their regulatory status and professional indemnity insurance.

Generally, yes, you can start a new company immediately after a liquidation, provided you have not been disqualified from acting as a director. However, there are restrictions on using the same or a similar name to the liquidated company within five years, unless you obtain permission from the court or follow the specific exceptions in the rules.