Expert Company Liquidators inFalmouth for Professional Advice

The cost of liquidation varies depending on the complexity of your case, the number of creditors, and the size of your company's asset base. Creditors' voluntary liquidation is often funded from company assets, whilst a director may need to contribute personally if assets are insufficient to cover professional fees.

Compulsory liquidation is initiated by a creditor through a court order, often after a winding-up petition is served. Voluntary liquidation is initiated by the company's shareholders through a resolution, typically because the directors believe the company cannot continue trading profitably or meet its debts as they fall due.

Once a liquidator is appointed, they take control of the company's affairs and trading must cease immediately, except for actions the liquidator approves to preserve asset value or complete essential contracts. Continuing to trade without approval could result in personal liability for the director.

A company is eligible for creditors' voluntary liquidation if its directors have made a statutory declaration of solvency, confirming the company can pay its debts in full within a specified period, usually twelve months. If the company cannot make this declaration, the process becomes a creditors' voluntary liquidation with a meeting of creditors.

The timeline depends on the complexity of the case, the number of creditors, and whether any assets need to be sold. A straightforward creditors' voluntary liquidation may conclude within six to nine months, whilst cases involving litigation, asset recovery, or complex investigations can take several years to complete fully.

Yes, alternatives include a company voluntary arrangement to repay debts over time, administration to restructure the business, or a formal restructuring plan. For solvent companies, a members' voluntary liquidation or striking off the register may be appropriate. A licensed practitioner can assess which route best protects your interests.

Employees are automatically made redundant when a liquidator is appointed, unless the liquidator retains them to assist with winding down operations. Employees may be entitled to claim statutory redundancy pay, unpaid wages, holiday pay, and pension contributions from the National Insurance Fund, subject to statutory limits.

Directors can be held personally liable if they have acted negligently, traded whilst insolvent, misused company funds, or given preferential treatment to certain creditors. The liquidator may pursue a claim for wrongful trading or misfeasance, which could result in a court order requiring the director to contribute personally.

You must provide the company's statutory books, financial records, bank statements, debtor and creditor lists, asset schedules, and details of any outstanding contracts or leases. The liquidator will also require a statement of affairs, which outlines the company's financial position as at the date of liquidation.

You should select a practitioner who is authorised by a recognised professional body, has experience with companies in your sector, and offers transparent fee structures. It is wise to speak with several specialists, ask for references, and confirm they hold an appropriate insolvency licence before making your final decision.