Professional Company LiquidatorsServing Gravesend 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 the liquidation is conducted lawfully. They also deal with claims from creditors and distribute any available funds according to the statutory priority.

The cost varies depending on the complexity of the case and the size of the company. Typically, fees are based on time spent or a fixed fee agreed at the outset. In many cases, the liquidator's fees are paid from the company's assets, but if there are insufficient assets, directors may need to fund the process personally.

A director can propose a creditors' voluntary liquidation if the company is insolvent. Alternatively, a shareholder can apply to the court to wind up the company, or a creditor may present a winding-up petition. You must be a director or shareholder to initiate the process voluntarily.

The length of time depends on the company's affairs. A straightforward CVL might be completed within six to twelve months, but complex cases with many assets or legal issues can take several years. The liquidator must finalise all matters before the company is dissolved.

Yes, but you must act with care. Trading while insolvent without a realistic prospect of recovery could lead to personal liability for wrongful trading. Once you decide to liquidate, you should cease trading and seek professional advice immediately to protect your position.

Alternatives include a company voluntary arrangement (CVA), administration, or informal restructuring with creditors. A CVA allows the company to continue trading while paying debts over time. Administration provides a moratorium from creditor action while a rescue plan is attempted. Each option has its own implications.

Employees are made redundant when a company enters liquidation. They may be entitled to claim redundancy pay, unpaid wages, holiday pay, and other statutory payments from the National Insurance Fund. The liquidator provides the necessary documentation for employees to make claims.

The liquidator investigates the conduct of directors during the period leading up to liquidation. If they find evidence of wrongful trading, fraudulent trading, or breach of duty, they may seek a court order for personal contribution or disqualification. Honest directors who have acted reasonably have nothing to fear.

Yes, but the process may require funding for the liquidator's fees. If there are no assets to cover costs, directors may need to provide a deposit or indemnity. In some cases, a compulsory liquidation might be possible if a creditor petitions, but this is rare for assetless companies.

Choose a licensed insolvency practitioner who is authorised by a recognised professional body, such as the Insolvency Practitioners Association or the ICAEW. Look for someone with experience in your industry and who offers a clear fee structure. Speak with a specialist listed on AccountingFirms to compare options.