Professional Company LiquidatorsServing Harescombe Businesses

The cost of a liquidation is not fixed and depends on the size and complexity of the company's affairs. Fees are usually paid from the company's assets, but if there are insufficient assets, creditors or directors may need to fund the process. A licensed professional will provide a clear fee quote before you commit to any formal procedure.

A Creditors' Voluntary Liquidation is available to a company that is insolvent, meaning it cannot pay its debts as they fall due. The directors must make a statutory declaration of solvency or insolvency, and shareholders must pass a resolution to wind up the company. A licensed insolvency practitioner will guide you through the eligibility criteria.

The initial meeting of creditors usually takes place within a few weeks of the decision to liquidate. The entire process, including the realisation of assets and the final distribution to creditors, can take between six and twelve months, though complex cases may take longer. Your appointed practitioner will provide a timeline based on your specific circumstances.

There are several alternatives to liquidation, including a Company Voluntary Arrangement (CVA), which allows a company to repay debts over a period of time, or administration, which can provide a moratorium from creditor action. A licensed professional can assess whether a rescue plan is viable or if a formal insolvency procedure is the most appropriate course of action.

During liquidation, directors have a duty to cooperate fully with the appointed liquidator. They must provide all relevant company records, including financial statements and bank accounts, and disclose any transactions that may be considered preferential or at an undervalue. Failure to cooperate can result in personal liability or disqualification proceedings.

Once a liquidator is appointed, the company's powers to trade cease, except for the purpose of a beneficial winding up. The liquidator takes control of the company's assets and affairs. If you wish to continue trading, you may need to consider an alternative procedure such as administration or a Company Voluntary Arrangement.

When a company enters liquidation, all employees are automatically dismissed. Employees may be able to claim certain statutory payments, such as redundancy pay and arrears of wages, from the National Insurance Fund. The liquidator will provide the necessary forms and guidance to help employees make their claims.

The liquidator's role is to take control of all company assets, including property, stock, and equipment, and to sell them for the benefit of creditors. They will also investigate the company's affairs to see if any assets have been disposed of improperly. The proceeds from the sale are then distributed to creditors in a strict statutory order.

Directors can be held personally liable for company debts if they have acted wrongfully or fraudulently. This may include trading whilst insolvent, taking excessive director's loans, or giving personal guarantees. A licensed insolvency practitioner will investigate the conduct of directors and advise on the potential risks of personal liability.

When choosing an insolvency practitioner, you should look for someone who is licensed and regulated by a recognised professional body. It is important to find a practitioner who has experience with companies of a similar size and in a similar sector. You can connect with a specialist listed on AccountingFirms to discuss your needs and get guidance on the best approach.