Company Liquidators in GreenwichGuiding Directors Through Closure

The cost of liquidation varies based on company size, asset complexity, and creditor numbers. Typically, fees range from a few thousand pounds upwards. A licensed insolvency practitioner will provide a fixed fee quote after an initial review. Always ask for a breakdown of costs before proceeding.

Any limited company that is insolvent, meaning it cannot pay its debts when they fall due, may be eligible for creditors' voluntary liquidation. The directors must pass a resolution, and at least 75% of shareholder votes are required. A licensed insolvency practitioner must be appointed to oversee the process.

The entire process typically takes between six and twelve months, depending on the complexity of the company's affairs. The initial meeting with creditors occurs within weeks of appointment, but final distribution of assets and dissolution of the company can take longer if there are legal issues or asset recovery challenges.

Once a liquidator is appointed, their control over the company begins. Directors no longer have authority to trade or make decisions. However, in some cases, the liquidator may allow limited trading to complete existing contracts or sell stock. This is at the liquidator's discretion and must be in the best interests of creditors.

Voluntary liquidation is initiated by the directors and shareholders, often through a creditors' voluntary liquidation. Compulsory liquidation is forced by creditors through a court order, typically after a winding-up petition. Voluntary liquidation gives directors more control over the process and often results in a smoother closure.

Yes, alternatives include company administration, which aims to rescue the business as a going concern, or a company voluntary arrangement (CVA), which allows the company to repay debts over time. Informal arrangements with creditors might also be possible. A licensed insolvency practitioner can assess which option is most suitable for your circumstances.

Employees are automatically made redundant when a company enters liquidation. They may be entitled to claim redundancy pay, unpaid wages, and holiday pay from the National Insurance Fund, which is handled by the liquidator. The liquidator will provide the necessary forms and guidance to affected employees.

Generally, no, as long as you have acted properly and not given personal guarantees. However, if you have traded whilst insolvent, misused company funds, or engaged in fraudulent activity, you may be held personally liable. A liquidator will investigate your conduct and may take action if wrongdoing is found.

Yes, a sole director and shareholder can appoint a liquidator. You must call a shareholder meeting to pass a resolution for voluntary liquidation. Since you hold all shares, the resolution will pass. Then you can nominate a licensed insolvency practitioner to act as liquidator.

You will need to provide company records, including statutory books, financial accounts, tax returns, bank statements, debtor and creditor lists, asset registers, and details of any charges or guarantees. The liquidator will also require a statement of affairs, which summarises the company's assets and liabilities.