Professional Company LiquidatorsServing Greater London

A company liquidator is an insolvency professional who takes control of a company to realise its assets, settle outstanding debts, and distribute any remaining funds to shareholders. Their role is to manage the entire winding-up process fairly and legally, ensuring all parties are treated according to the law.

Costs vary depending on the company's size, asset complexity, and the type of liquidation. Creditors' voluntary liquidation is often funded from company assets. For a members' voluntary liquidation, fees are typically agreed upon in advance. You should always obtain a clear written quotation before proceeding.

A members' voluntary liquidation is used for solvent companies where directors can swear a declaration of solvency. A creditors' voluntary liquidation is for insolvent companies, where creditors control the process and a liquidation committee is formed. The distinction is crucial as it affects who appoints the liquidator.

The timeline depends on the complexity of the case. A straightforward members' voluntary liquidation might conclude within six months. A creditors' voluntary liquidation often takes longer, possibly twelve months or more, due to the need to investigate transactions, deal with creditor queries, and realise assets.

Compulsory liquidation is typically initiated by a creditor petitioning the court, often due to an unpaid statutory demand. The company must be unable to pay its debts as they fall due. A court hearing determines the outcome, and if granted, an official receiver or an appointed insolvency practitioner becomes liquidator.

Yes, directors can apply for a compulsory winding-up order if the company is insolvent. However, it is more common and cost-effective to hold a board meeting and pass a resolution for voluntary liquidation. This approach gives directors more control over the process and the choice of liquidator.

Once a liquidator is appointed, they take control of all company assets. They will arrange for an independent valuation and then sell the assets to the highest bidder. The proceeds are used to pay the costs of the liquidation and then to settle claims from secured and unsecured creditors in a legal order.

Yes, several alternatives exist, including a company voluntary arrangement to repay debts over time, administration to restructure the business, or simply negotiating a payment plan with creditors. A licensed insolvency practitioner can assess your financial position and recommend the most suitable course of action.

Directors are responsible for settling employee arrears of wages, holiday pay, and redundancy pay. In a liquidation, these claims are preferential and are paid from company assets before unsecured creditors. If assets are insufficient, employees may claim from the National Insurance Fund, but the liquidator must provide a statement.

Generally, no. The limited liability status of a company protects directors from personal liability for business debts. However, personal liability can arise if you have given a personal guarantee, acted fraudulently, or traded while knowingly insolvent. The liquidator will investigate your conduct and may take action if necessary.