Company Liquidators in Farehamfor Fareham

The cost varies depending on the complexity of your company's affairs. A simple, solvent liquidation might cost less than an insolvent one with many creditors. You should get a fixed-fee quote from a licensed insolvency practitioner before proceeding. Always ask for a breakdown of fees and what is included.

A company is insolvent if it cannot pay its debts as they fall due, or if its liabilities exceed its assets. Signs include unpaid bills, creditor demands, or a winding-up petition. A licensed insolvency practitioner can assess your balance sheet and cash flow to confirm the legal position.

A CVL starts with a board meeting and a shareholders' resolution to wind up the company. Then you appoint a licensed insolvency practitioner as liquidator. They take control of assets, notify creditors, and distribute any proceeds according to legal priority. The process usually takes several months to complete.

A compulsory liquidation is ordered by a court, usually after a creditor presents a winding-up petition. The court hearing can occur within weeks of the petition. Once the order is made, the official receiver or an appointed liquidator takes over. The entire process can take several months or longer.

You can continue trading if it does not worsen the position of creditors. However, you must avoid wrongful trading, which means trading when you know the company cannot avoid insolvency. Taking professional advice early is crucial to protect yourself from personal liability.

Alternatives include a company voluntary arrangement (CVA), administration, or informal arrangements with creditors. A CVA lets you pay debts over time while keeping the business running. Administration gives a moratorium from creditors. Your chosen solution depends on the viability of the business and the level of debt.

Employees are made redundant when a liquidator is appointed. They may be entitled to redundancy pay, notice pay, and unpaid wages. These are preferential claims in liquidation. The liquidator will provide the necessary forms to claim from the National Insurance Fund. Employees should also seek their own legal advice.

A liquidator is a licensed insolvency practitioner who takes control of the company's assets, realises them, and distributes the proceeds to creditors in a statutory order. They also investigate the directors' conduct and report any wrongdoing. Their duty is to creditors, not to the directors.

Generally, directors are not personally liable for company debts if they have acted properly. However, personal liability can arise if you have given personal guarantees, or if you are found guilty of wrongful trading, fraudulent trading, or misfeasance. Professional advice is essential to avoid these risks.

Choose a licensed insolvency practitioner with experience in your sector and a local presence. Check their credentials with a recognised professional body. Ask for a clear fee structure and a written proposal. You can also get guidance from a specialist listed on AccountingFirms.