Professional Company Liquidators in EsherGuiding Directors Through Closure

A company liquidator is a licensed insolvency practitioner who manages the formal closure of a company. They take control of assets, sell them for the benefit of creditors, investigate the company's affairs, and distribute any proceeds according to legal priorities. They also handle the administrative and legal steps required to dissolve the company.

Costs vary depending on the complexity of the company's affairs, the number of creditors, and the work required. Creditors' voluntary liquidation is often funded from the company's assets, but if assets are insufficient, directors may need to consider other funding options. A licensed practitioner will provide a clear fee structure before you commit.

A creditors' voluntary liquidation is typically used when a company is insolvent and cannot pay its debts as they fall due. The directors must make a statutory declaration of solvency? No, that is for a members' voluntary liquidation. For a CVL, the directors convene a board meeting and call a general meeting of shareholders to pass a resolution to wind up.

The length of a liquidation depends on the complexity of the company's affairs, but most liquidations are completed within six to twelve months. If there are complex asset realisations or legal disputes, the process may take longer. The liquidator will provide a timeline at the outset and keep creditors informed of progress throughout.

A members' voluntary liquidation (MVL) is used when a company is solvent and directors can swear a declaration of solvency. A creditors' voluntary liquidation (CVL) is for insolvent companies where the declaration cannot be made. In a CVL, creditors control the process and a liquidator is appointed to protect their interests.

Yes, it is possible to liquidate a company with no assets, but the costs of liquidation must be covered. If the company has no assets, directors may need to fund the process personally or consider alternative options such as a strike-off from the register, provided the company is not insolvent and meets certain criteria.

Employees are entitled to claim certain payments from the National Insurance Fund, including arrears of wages, holiday pay, and redundancy pay, if the company cannot pay them. The liquidator will provide the necessary forms and guidance. Employees are also preferential creditors for certain amounts owed to them.

Alternatives include a company voluntary arrangement (CVA), administration, or informal arrangements with creditors such as a time to pay agreement. A licensed insolvency practitioner can assess your situation and advise on the most appropriate option, which may allow the business to continue trading or achieve a better return for creditors.

The liquidator has a statutory duty to investigate the conduct of directors leading up to the liquidation. They will review the company's accounts, transactions, and decisions to determine if there has been any wrongful trading, misfeasance, or other misconduct. If necessary, they can take legal action against directors to recover funds for creditors.

You should choose a practitioner who is licensed by a recognised professional body, such as the Insolvency Practitioners Association or the Institute of Chartered Accountants. Look for someone with experience in your sector and a transparent fee structure. You can also ask for recommendations from your accountant or solicitor.