Expert Company Liquidators inHarefield for Sound Advice

A company liquidator is a licensed insolvency practitioner who manages the closure of a company. They collect and sell assets, settle debts with creditors, and distribute any remaining funds to shareholders. They also ensure that all legal requirements are fulfilled and that the company is formally dissolved at the end of the process.

The cost of liquidation varies based on the size and complexity of the company. Fees typically range from a few thousand pounds for a simple solvent liquidation to more for an insolvent one. A liquidator will provide a fixed fee quote before you proceed, so you know the cost upfront.

Solvent liquidation, often called members' voluntary liquidation, is used when a company can pay its debts in full within 12 months. Insolvent liquidation, or creditors' voluntary liquidation, is for companies that cannot pay their debts. The process and the liquidator's duties differ significantly between the two.

A solvent liquidation can be completed in as little as six to nine months, once the statutory declaration of solvency is filed. An insolvent liquidation typically takes longer, often around a year or more, depending on the complexity of the company's affairs and the time needed to realise assets and investigate director conduct.

Yes, you can liquidate a company with no assets, but it is often more cost-effective to apply for a strike-off if the company is solvent and has no assets. If the company is insolvent, a liquidator may still be appointed, but you should consider whether there are funds to cover the fees.

Alternatives include administration, which aims to rescue the company as a going concern, or a company voluntary arrangement (CVA), which is a formal agreement to pay creditors over time. There is also a simple strike-off for dormant companies. A licensed professional can advise on which option suits your circumstances.

Only directors or shareholders can initiate a liquidation. A director can call a meeting of shareholders to pass a resolution for voluntary liquidation. If the company is insolvent, creditors may also petition the court for a compulsory liquidation, but that is a different process.

In a liquidation, employees are made redundant. The liquidator will ensure that statutory redundancy pay and other entitlements are claimed from the National Insurance Fund. Employees who are owed wages or holiday pay are preferential creditors and will be paid from available assets before unsecured creditors.

Yes, a liquidator has a duty to investigate the conduct of directors in the period leading up to liquidation. They will review transactions, including any payments to connected parties, and can report to the Insolvency Service if they find evidence of wrongful trading or other misconduct. This can lead to disqualification or personal liability.

You should choose a licensed insolvency practitioner with experience in your type of liquidation. Check their qualifications and ask for a fixed fee quote. Speak with a specialist listed on AccountingFirms to get guidance and compare your options before making a decision.