Company Liquidators in Harrow WealdExpert Advice for Directors

A licensed insolvency practitioner acts as liquidator, taking control of the company's assets, realising them for the benefit of creditors, and investigating the directors' conduct. They ensure the process is carried out lawfully and that all parties receive what they are entitled to under insolvency legislation.

Costs vary depending on the complexity of the company's affairs, the number of creditors, and the work required. A simple, solvent liquidation may be fixed-fee, while an insolvent liquidation often involves time-based fees. Always request a clear written quote before engaging a liquidator.

Any limited company that is insolvent, meaning it cannot pay its debts as they fall due, is eligible for a creditors' voluntary liquidation. A solvent company can also be closed via a members' voluntary liquidation if it can pay all debts within 12 months. Directors must pass a resolution and appoint a licensed practitioner.

A creditors' voluntary liquidation typically takes between 6 and 12 months to conclude, though complex cases may take longer. A members' voluntary liquidation can be completed more quickly, often within a few months. The liquidator must finalise all asset sales, creditor claims, and final accounts before dissolution.

You can continue trading while you assess options, but you must not trade at the expense of creditors. If you incur further credit when you know the company cannot pay, you risk personal liability for wrongful trading. Seek professional advice immediately if you are unsure about your position.

Alternatives include a company voluntary arrangement, administration, or informal arrangements with creditors. For solvent companies, striking off is a cheaper option. Each route has different implications for directors, creditors, and employees, so it is vital to compare them with a licensed professional before deciding.

A creditors' voluntary liquidation (CVL) is for insolvent companies and is initiated by directors, while a members' voluntary liquidation (MVL) is for solvent companies that can pay all debts in full. The processes differ in terms of the declaration of solvency, creditor involvement, and the liquidator's duties.

Generally, directors are not personally liable for company debts, provided they have not given personal guarantees or acted wrongfully. However, if you have traded whilst insolvent or misused funds, you may be held personally accountable. A liquidator will investigate your conduct and may seek compensation if misconduct is found.

Yes, a liquidator can take action against directors for wrongful trading, fraudulent trading, or misfeasance. They can also recover money from director loan accounts or set aside transactions at an undervalue. This is why it is essential to act honestly and seek advice early if financial difficulties arise.

Employees are made redundant when a company enters liquidation, unless a buyer is found for the business. They may claim statutory redundancy pay, unpaid wages, and holiday pay from the National Insurance Fund. The liquidator will provide the necessary forms and guide employees through the claims process.