Professional Company Liquidators inHenley for Director Guidance

A company liquidator is an insolvency practitioner who manages the closure of a company that cannot pay its debts. They sell assets, distribute funds to creditors, and formally dissolve the company. They also investigate the directors' conduct and report to the relevant authorities.

The cost varies depending on the complexity of the company's affairs. Typically, fees are based on the work involved, such as asset realisation and creditor communication. Some liquidators offer a fixed fee for straightforward cases. It is advisable to obtain a clear quote before proceeding.

A company is eligible for liquidation if it is insolvent, meaning it cannot pay its debts when they fall due. This can include owing money to suppliers, HMRC, or banks. The decision to liquidate is usually made by the directors or shareholders, but a creditor can also petition for compulsory liquidation.

A simple liquidation might complete in six to twelve months, but complex cases with many assets or disputes can take longer. The liquidator must first realise assets, agree claims, and distribute funds. After that, the company is dissolved, which typically happens three months after the final meeting.

Alternatives include a company voluntary arrangement (CVA) to restructure debts, administration to give breathing space, or informal arrangements with creditors. Directors might also consider selling the business as a going concern. Each option has different implications for the company and its directors.

No, once a liquidator is appointed, they take control of the company. The directors' powers cease, and the liquidator is responsible for managing the company's affairs. Trading would only continue if the liquidator decides it is beneficial to sell the business as a going concern.

Directors must cooperate fully with the liquidator, providing all necessary books, records, and information. They must not hide assets or destroy evidence. Directors also have a duty to consider the interests of creditors from the moment insolvency is likely, to avoid wrongful trading.

Generally, directors are not personally liable for company debts, as the company is a separate legal entity. However, personal liability can arise if you have given personal guarantees, or if you have acted wrongfully, such as trading while insolvent with no reasonable prospect of recovery.

The liquidator has a statutory duty to investigate the conduct of directors leading up to the liquidation. They will review transactions, including any preferences or undervalue transfers, and report to the Insolvency Service if they find evidence of misconduct. This can lead to disqualification or other penalties.

You should first speak with a licensed insolvency practitioner to assess your company's financial position. They will advise on the most appropriate course of action. If liquidation is agreed, they will convene a meeting of shareholders to pass a resolution, and the liquidation will commence from that date.