Professional Company LiquidatorsServing Hereford Businesses

A company liquidator is a licensed insolvency professional who manages the closure of a company. They sell assets, settle creditor claims, and distribute any remaining funds. They also ensure compliance with legal requirements and provide a final report on the company's affairs.

Costs vary based on company size, asset complexity, and creditor structure. Typically, fees range from £1,500 to £5,000 for a straightforward creditors' voluntary liquidation. A licensed practitioner will provide a fixed fee quote after an initial assessment, so you know the cost upfront.

Directors, shareholders, or creditors can appoint a liquidator. For a creditors' voluntary liquidation, shareholders pass a resolution and creditors nominate the liquidator. For a compulsory liquidation, a court order is required. A licensed professional can guide you through the appropriate process.

The duration depends on the complexity of the company's affairs. A straightforward liquidation may conclude within six to nine months, while cases with many assets or disputes can take longer. Your liquidator will provide a timeline after reviewing your specific situation.

Alternatives include company voluntary arrangements (CVAs), administration, or informal restructuring. For solvent companies, striking off is a cheaper option. Directors should seek professional advice to determine which route best protects creditors and shareholders.

Once liquidation begins, directors lose control of the company. The liquidator takes over to protect creditor interests. Trading may continue briefly if the liquidator believes it is necessary to maximise asset value, but this is rare and requires approval.

Employees are automatically dismissed when a company enters liquidation. They may claim redundancy pay and unpaid wages from the National Insurance Fund. The liquidator provides necessary documentation and guidance to help employees make claims.

For a creditors' voluntary liquidation, you do not need to attend court. For compulsory liquidation, a court hearing is required. Your liquidator will advise on the specific steps and whether your presence is necessary, minimising any inconvenience.

You must provide company records, financial statements, asset details, creditor lists, and employee information. The liquidator also requires details of any transactions in the preceding months. Full disclosure ensures a smooth process and helps avoid legal issues.

Yes, liquidators have a duty to investigate director conduct. They review transactions, loans, and potential wrongful trading. If misconduct is found, they may report it to the Insolvency Service, which could lead to disqualification or other penalties. Honesty and cooperation are essential.