Professional Company LiquidatorsServing Gainsborough Businesses

A company liquidator is a licensed insolvency practitioner who manages the closure of an insolvent company. They realise assets, settle creditor claims, investigate director conduct, and ensure the company is formally dissolved. Their role is to maximise returns to creditors whilst acting impartially and in accordance with insolvency law.

Costs vary depending on the size and complexity of the company. Typically, fees range from a few thousand pounds for a simple case to more for complex insolvencies. The liquidator's fees are paid from the company's assets, not from the director's personal funds, unless there are issues like wrongful trading or undisclosed assets.

Creditors' voluntary liquidation usually takes between six and twelve months, but the exact timeline depends on asset realisation, creditor claims, and any investigations. A simple case might conclude faster, while complex ones with disputes or litigation can extend beyond a year. Your liquidator will provide a realistic timeline at the outset.

Yes, you can liquidate an insolvent company with no assets. This is often done through a creditors' voluntary liquidation, where the liquidator is appointed to wind up the company. The costs may be covered by a director's undertaking or a third party, as there are no assets to pay fees. Alternatively, a compulsory liquidation may be petitioned by a creditor.

Voluntary liquidation is initiated by the company's directors or shareholders, typically through a creditors' voluntary liquidation if the company is insolvent. Compulsory liquidation is a court order, often from a creditor's winding-up petition. Voluntary gives more control and is generally quicker and less costly than compulsory.

Alternatives include a company voluntary arrangement (CVA) to restructure debts, administration to rescue the business as a going concern, or informal arrangements with creditors. Directors might also consider refinancing or selling the business. A licensed insolvency practitioner can assess which option is most suitable based on your company's specific circumstances.

Directors must cooperate with the liquidator, provide all relevant books and records, and disclose all company assets and liabilities. They must not dispose of assets or prejudice creditor interests. Directors also have a duty to avoid wrongful trading, meaning they should not continue trading if they know the company cannot avoid insolvency.

Generally, directors are not personally liable for company debts, but there are exceptions. If you have given personal guarantees, you will be liable for those debts. Additionally, if you are found guilty of wrongful trading, fraudulent trading, or misfeasance, the court may order you to contribute to the company's assets from your own pocket.

When a company enters liquidation, employees are automatically dismissed. They may be entitled to redundancy pay, unpaid wages, and holiday pay, which are paid as preferential claims from the company's assets. If assets are insufficient, employees can claim certain statutory payments from the National Insurance Fund, subject to eligibility criteria.

Look for a licensed insolvency practitioner who is a member of a recognised professional body, such as the IPA or ACCA. Check their experience with companies similar to yours and ask for a clear fee structure. You can also seek recommendations from accountants or business advisors, and ensure the practitioner is regulated and has professional indemnity insurance.