Expert Company Liquidatorsin Hendon London

The cost varies depending on the complexity of the company's affairs, the number of assets, and the level of creditor engagement. A licensed liquidator will provide a fixed fee quote after an initial assessment. You should always obtain a clear breakdown of fees before agreeing to proceed with any liquidation process.

A company is generally eligible for a Creditors' Voluntary Liquidation if it is insolvent, meaning it cannot pay its debts as they fall due. The directors must pass a resolution to wind up the company, and a meeting of creditors is then held to confirm the appointment of the nominated liquidator.

The process begins with a board meeting where directors formally resolve to wind up the company. Following this, shareholders pass a special resolution, and a virtual or physical meeting of creditors is convened. The creditors vote to confirm the appointment of the chosen licensed insolvency practitioner.

The duration depends on the complexity of the case. A straightforward liquidation with few assets and no disputes might be concluded within six to nine months. Cases with complex asset realisations or investigations can take considerably longer, sometimes extending beyond twelve months.

Alternatives include a Company Voluntary Arrangement, which is a formal agreement with creditors to pay debts over a period, or administration, which aims to rescue the business as a going concern. Informal arrangements with creditors might also be possible, but these do not offer the same legal protections.

Directors can be held personally liable if they have acted wrongfully or fraudulently, or if they have given personal guarantees. The liquidator will investigate the conduct of directors. If assets were disposed of at an undervalue or used for personal benefit, recovery action may be taken.

Employees are made redundant when a company enters liquidation. The liquidator is responsible for ensuring that employees receive their statutory redundancy pay and any outstanding wages owed. Claims for these amounts are made to the National Insurance Fund, which provides a safety net for employees.

The liquidator takes control of all company assets to realise their value for the benefit of creditors. This includes selling property, plant, machinery, stock, and collecting any debts owed to the company. The liquidator must obtain the best possible price for assets whilst acting in the interests of all creditors.

Creditors or directors can challenge a liquidator's decision or their fees by applying to the court. There are specific grounds for challenge, such as a failure to act impartially or charging unreasonable fees. It is advisable to seek legal advice before making such a challenge.

Directors have a statutory duty to cooperate with the liquidator by providing all relevant books, records, and information. Failure to cooperate without a reasonable excuse is a criminal offence. It can lead to personal liability for debts and may result in disqualification from acting as a director in the future.