Company Liquidators in Glosfor Glos Businesses

A licensed insolvency practitioner takes control of the company, realises its assets, investigates the directors' conduct, and distributes the proceeds to creditors in the statutory order. They also deal with employee claims and ensure the company is formally dissolved at Companies House.

Costs vary depending on the complexity of the case and the number of creditors. For a Creditors' Voluntary Liquidation, the liquidator's fee is usually based on time spent or a percentage of asset realisations. You should always obtain a clear written quote before agreeing to an appointment.

A solvent liquidation, known as a Members' Voluntary Liquidation, is used when the company can pay its debts in full. An insolvent liquidation, typically a Creditors' Voluntary Liquidation, occurs when liabilities exceed assets. The procedures, forms, and responsibilities differ significantly between the two.

A Creditors' Voluntary Liquidation can often be completed within twelve to eighteen months, depending on the complexity of asset sales and creditor claims. A Members' Voluntary Liquidation can sometimes be concluded more quickly. Delays can occur if there are investigations or litigation to pursue.

Continuing to trade while insolvent risks personal liability for wrongful trading if you do not take every step to minimise losses to creditors. You should seek immediate professional advice. A liquidator can help you understand your position and the legal consequences of continued trading.

Alternatives include a Company Voluntary Arrangement, which is a formal agreement to pay creditors over time, or administration, which aims to rescue the business as a going concern. Informal arrangements with creditors may also be possible. A licensed practitioner can advise on which option is most suitable.

Employees are automatically dismissed when a liquidator is appointed. They can claim statutory redundancy pay, unpaid wages, and holiday pay from the National Insurance Fund. The liquidator will provide the necessary forms and guidance to help employees make their claims.

Directors must cooperate fully with the liquidator, providing all company records, accounts, and explanations. They must also complete a statement of affairs. Failure to cooperate can result in personal liability or disqualification proceedings. The liquidator will investigate the directors' conduct and report to the authorities.

A liquidator can pursue directors if they have given personal guarantees for company debts. The liquidator's role is to realise assets for creditors, which includes enforcing guarantees. Directors should seek independent legal advice if they are concerned about personal guarantees.

A statement of affairs is a formal document listing the company's assets, liabilities, and creditors. It is prepared by the directors and submitted to the liquidator. This document provides a financial snapshot of the company at the date of liquidation and is essential for the liquidator to administer the case.