Professional Company LiquidatorsGuidance in Frome

The cost varies based on the complexity of the company's affairs, the number of creditors, and the work required to realise assets. A licensed insolvency practitioner will provide a fee estimate before you commit. Fees are typically paid from company assets, and in some cases, they may be recoverable from preferential creditors.

Any company that is insolvent, meaning it cannot pay its debts as they fall due, is eligible for creditors' voluntary liquidation. The directors must pass a resolution to wind up the company, and a meeting of creditors is then held to confirm the appointment of a liquidator.

The initial meeting of creditors typically occurs within a few weeks of the directors' decision. The liquidation itself may take from several months to a few years, depending on the complexity of realising assets, dealing with legal claims, and concluding investigations. Simple cases often complete within a year.

Alternatives include a company voluntary arrangement (CVA), which allows the company to continue trading while paying creditors over time, or administration, which may rescue the business as a going concern. Informal arrangements with creditors are also possible, but they require the consent of all affected parties.

A liquidator must act in the best interests of all creditors, realise the company's assets, investigate the directors' conduct, and distribute proceeds in the statutory order. They must also report any wrongful trading or misfeasance to the relevant authorities and ensure compliance with the Insolvency Act.

Directors are generally not personally liable for company debts unless they have given personal guarantees, or they have been found guilty of wrongful or fraudulent trading. A liquidator may also pursue directors for misfeasance if they have misapplied company assets or breached their duties.

The directors must convene a meeting of creditors within a specified period after the resolution to wind up is passed. Notice must be given to all known creditors, and the meeting is held to approve the appointment of the liquidator and to receive a statement of affairs.

When a company goes into liquidation, employees are automatically dismissed. They may be entitled to claim redundancy pay, unpaid wages, and holiday pay from the National Insurance Fund, but the liquidator will provide guidance on the claims process and the priority of payments.

Directors must cooperate fully with the liquidator, providing all books, records, and information about the company's affairs. They must also complete a statement of affairs and may be required to attend interviews. Failure to cooperate can lead to personal liability or disqualification.

Once a company enters liquidation, it ceases to trade, except for the purpose of a beneficial realisation of assets. The liquidator may continue trading for a short period if it helps to sell the business as a going concern, but this is limited and requires the approval of creditors.