Professional Company LiquidatorsServing Hambrook Businesses

A creditors' voluntary liquidation is used when a company is insolvent and cannot pay its debts, whereas a members' voluntary liquidation is for a solvent company where shareholders wish to close the business. The latter requires a declaration of solvency from the directors, and the process is typically quicker and less formal.

The cost of liquidation varies depending on the complexity of the company's affairs, the number of creditors, and the chosen insolvency practitioner. For a creditors' voluntary liquidation, fees are often taken from the company's assets, but for a members' voluntary liquidation, you will need to agree a fixed fee or hourly rate.

Yes, it is possible to liquidate an insolvent company with no assets, but you will need to fund the liquidator's fees. Some practitioners offer a 'no asset' liquidation service for a fixed fee, which you may need to pay personally. The liquidator will still carry out statutory duties and investigate the directors' conduct.

A creditors' voluntary liquidation typically takes between six and twelve months to complete, depending on the complexity of the case and the realisation of assets. A members' voluntary liquidation can often be concluded within three to six months. The liquidator must file final accounts with Companies House and hold a final meeting.

When a company enters liquidation, employees are automatically dismissed from the date the winding-up order is made or the resolution is passed. They may be entitled to claim redundancy pay, unpaid wages, holiday pay, and other arrears from the National Insurance Fund, subject to statutory limits.

Yes, a director can start a new company after liquidation, but there are restrictions. If the company was insolvent and the director is found to be unfit, they may be disqualified for a period. Also, the use of a 'phoenix' company name that is similar to the old one is prohibited for five years unless certain conditions are met.

An insolvency practitioner acts as the liquidator, taking control of the company's assets, realising them for the benefit of creditors, investigating the directors' conduct, and distributing any funds according to the statutory hierarchy. They must be licensed and are bound by a strict code of ethics.

Yes, alternatives include company administration, a company voluntary arrangement (CVA), or informal negotiation with creditors. These options may allow the business to continue trading or achieve a better return for creditors. A licensed professional can help you assess which route is most suitable for your situation.

Directors who fail to cooperate with a liquidator, conceal assets, or provide false information may face personal liability, fines, or even imprisonment. The liquidator has the power to apply to the court for an order requiring the director to provide information or deliver up company records.

You should 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 explanation of fees and the process. You can also check their regulatory status online.