Company Liquidators in EyeExpert Advice for Eye

The cost varies depending on the complexity of your company's affairs. Typically, fees range from £4,000 to £8,000 plus VAT, but a licensed insolvency practitioner will provide a fixed quote after an initial assessment. This fee covers the statutory work, including preparing the statement of affairs, convening creditor meetings, and realising assets.

Any company that is insolvent—meaning it cannot pay its debts as they fall due—can enter creditors' voluntary liquidation. This process is initiated by the directors and requires a shareholder resolution. The company must have sufficient assets to fund the liquidation process, or the directors may need to contribute personally to cover costs.

The entire process typically takes between 6 to 12 months, depending on the complexity of the case. The initial meeting of creditors is held within 14 days of the resolution, and the liquidator then realises assets, investigates affairs, and distributes funds. Final closure occurs when the liquidator files the final report with Companies House.

Yes, but it is challenging because liquidation requires funding. If the company has no assets, the directors may need to consider alternative options such as a members' voluntary liquidation if the company is solvent, or a strike-off if it is dormant. For insolvent companies with no assets, a director may need to fund the liquidation personally.

Compulsory liquidation is forced by a court order, usually after a creditor petitions for winding-up. Voluntary liquidation is initiated by the directors or shareholders. In a creditors' voluntary liquidation, the directors appoint a liquidator, whereas in compulsory liquidation, the Official Receiver is appointed initially. The process and control differ significantly.

Yes, there are several alternatives including company voluntary arrangements (CVAs), administration, or informal restructuring. A CVA allows a company to pay off debts over a period while continuing to trade. Administration provides a moratorium from creditors while a restructuring plan is implemented. A licensed professional can advise on the most suitable option.

A liquidator has a duty to act in the best interests of the company's creditors. They must realise assets, investigate the directors' conduct, and report any wrongful trading or fraudulent activity. They also distribute funds to creditors in the statutory order and ensure compliance with the Insolvency Act. Their role is regulated and independent.

Generally, no, because a limited company is a separate legal entity. However, personal liability can arise if you have given personal guarantees, or if you have engaged in wrongful trading or fraudulent activity. Directors can also be liable for unpaid taxes if they have acted improperly. Professional advice is essential to understand your exposure.

Employees are made redundant when the company enters liquidation. They are entitled to claim for unpaid wages, holiday pay, and redundancy pay from the National Insurance Fund. The liquidator will provide them with the necessary forms (RP1, RP2, and RP3) to make claims. They are also preferential creditors for certain arrears.

Yes, you can start a new company immediately after liquidation, but there are restrictions. You cannot use the same or a similar name to the liquidated company within five years unless you follow the 'phoenix' provisions, which require giving notice to creditors. You must also ensure you have not been disqualified as a director.