Professional Company LiquidatorsServing Ellesmere

A company liquidator is a licensed insolvency practitioner who manages the formal closure of a company. They realise assets, settle debts in the correct legal order, investigate director conduct, and ensure the company is struck off the register. Their role is to achieve the best outcome for creditors whilst acting withinsolvency law.

The cost varies depending on the complexity of the company's affairs, the number of assets, and the level of creditor involvement. Typically, fees range from £4,000 to £8,000 plus VAT, but a licensed practitioner will provide a fixed fee quote after an initial assessment. Always request a transparent breakdown.

A company is eligible for creditors' voluntary liquidation if it is insolvent, meaning it cannot pay its debts as they fall due. The directors must pass a resolution to wind up voluntarily, and then a meeting of creditors is held to confirm the appointment of a liquidator. This process is formal and requires professional guidance.

The length of time depends on the complexity of the case. A simple liquidation with no assets or minimal creditors can be completed in around six to nine months. Cases with complex asset realisation or legal disputes may take longer, sometimes exceeding twelve months. Your liquidator will provide an estimated timeline.

Yes, you can liquidate an insolvent company with no assets. This is often done through a creditors' voluntary liquidation, where the liquidator's fees are paid by the directors or from the company's remaining funds. Alternatively, a compulsory liquidation may be petitioned by a creditor, but that is a court-led process.

Alternatives include a company voluntary arrangement (CVA), which allows the company to repay debts over time, or formal restructuring through administration. Sometimes, a simple strike-off is possible if the company is solvent and not trading. Each option has different implications for directors, so professional advice is essential.

A liquidator has a statutory duty to investigate the conduct of directors leading up to insolvency. They will examine transactions, potential misfeasance, and whether the company kept proper records. If misconduct is found, they may report to the Insolvency Service, which can lead to director disqualification.

No, once a liquidator is appointed, they take control of the company and its assets. The directors' powers cease, and trading must stop immediately unless the liquidator decides to continue for a short period to maximise value. Any trading after appointment without authorisation is a criminal offence.

Employees are automatically made redundant when a liquidator is appointed. They may be entitled to claim redundancy pay, unpaid wages, holiday pay, and pension contributions from the National Insurance Fund. The liquidator will provide the necessary forms and guidance to help employees make these claims.

Key signs include persistent cash flow problems, inability to pay suppliers or creditors on time, legal action from creditors, and a negative net asset position. If you are unsure, it is wise to seek a professional opinion early. Ignoring these signs can lead to personal liability for wrongful trading.