Professional Company LiquidatorsServing Godstone Businesses

A licensed insolvency practitioner acts as liquidator, taking control of the company's assets, realising them for the benefit of creditors, investigating the company's affairs, and ensuring that legal requirements are met. They also handle creditor claims and distribute any available funds in the correct order of priority.

Costs vary depending on the complexity of the case, the size of the company, and the amount of work involved. Typically, fees are based on time spent or as a percentage of realisations. You should ask for a clear fee structure upfront, including any disbursements, before agreeing to proceed.

Directors, shareholders, or creditors can apply to place a company into liquidation. For a creditors' voluntary liquidation, the directors must make a statutory declaration of insolvency and call a meeting of shareholders to pass a resolution. A court may also order compulsory liquidation following a petition.

The length depends on the complexity of the company's affairs. A straightforward creditors' voluntary liquidation might be completed within six to twelve months, but cases with complex asset sales, legal disputes, or missing records can take several years to conclude fully.

Voluntary liquidation is initiated by the directors or shareholders, either as a members' voluntary liquidation (solvent) or creditors' voluntary liquidation (insolvent). Compulsory liquidation is forced by a court order, usually following a winding-up petition from a creditor. Each has different procedures and implications for directors.

Once a liquidator is appointed, they take control of the company and the directors' powers cease. You cannot continue trading without the liquidator's permission. In a creditors' voluntary liquidation, the directors may continue to trade under the liquidator's supervision for a short period, but only to protect assets or complete essential contracts.

Employees are automatically dismissed when a company enters liquidation, unless the liquidator retains them to assist with winding down operations. Employees may be able to claim redundancy pay, unpaid wages, and holiday pay from the National Insurance Fund, though certain caps apply. The liquidator provides guidance on making such claims.

Yes, alternatives include a company voluntary arrangement (CVA) to restructure debts, administration to give breathing space, or informal negotiation with creditors. For solvent companies, a members' voluntary liquidation is used. A licensed insolvency practitioner can assess which option best suits your circumstances.

Directors must cooperate fully with the liquidator, provide all company records and accounts, and disclose any transactions that may be void or preferential. They must also avoid wrongful trading by not continuing to trade when they know the company is insolvent. Failure to comply can lead to personal liability or disqualification.

Look for a licensed insolvency practitioner who is regulated by a recognised professional body, such as the Insolvency Practitioners Association or the ICAEW. Check their experience with companies of your size and sector, ask for references, and ensure they provide a clear fee quote. You can also consult the AccountingFirms directory for listings.