Professional Company Liquidatorsin Hertford

The cost of liquidation depends on the size and complexity of your company. Typically, fees range from £4,000 to £8,000 plus VAT for a Creditors' Voluntary Liquidation. The liquidator's fee is paid from the company's assets, not from your personal funds. Always obtain a fixed fee quote before proceeding.

Any limited company that is insolvent can enter liquidation. This means it cannot pay its debts as they fall due, or its liabilities exceed its assets. Directors must pass a resolution to wind up the company voluntarily, and creditors must approve the appointment of a liquidator at a meeting.

The process begins with a meeting of directors to pass a resolution for voluntary winding up. Then, a statement of affairs is prepared, and a creditors' meeting is held to confirm the liquidator's appointment. The liquidator then realises assets, investigates affairs, and distributes funds to creditors.

A simple Creditors' Voluntary Liquidation can be completed in as little as six to nine months. However, complex cases with many assets or disputes may take longer. The liquidator must also deal with HM Revenue & Customs and other statutory bodies, which can affect the timeline.

Yes, there are alternatives such as a Company Voluntary Arrangement (CVA), administration, or informal restructuring. A CVA allows you to repay debts over a period while continuing to trade. Administration provides a moratorium from creditors while a rescue plan is attempted. A licensed professional can advise on the best route.

Employees are made redundant when a company enters liquidation. The liquidator has a duty to inform employees of the situation. Employees may be able to claim statutory redundancy pay, unpaid wages, and holiday pay from the National Insurance Fund. The liquidator will provide the necessary forms and guidance.

Yes, you can liquidate a company with no assets. This is often done through a Creditors' Voluntary Liquidation, where the liquidator's fee is funded by the director or a third party. Alternatively, if the company is not insolvent, you can apply for a Members' Voluntary Liquidation, but this requires a declaration of solvency.

Directors must cooperate fully with the liquidator, provide all company records and information, and not dispose of any assets without permission. They must also avoid wrongful trading, which means continuing to trade while knowing the company cannot avoid insolvency. Failure to comply can lead to personal liability or disqualification.

Generally, directors are not personally liable for company debts if they have acted properly. However, if you have given personal guarantees for loans or leases, you may be pursued for those amounts. Additionally, if wrongful trading or fraudulent trading is found, a court can order you to contribute to the company's assets.

You should choose a licensed insolvency practitioner who is authorised by a recognised professional body, such as the Insolvency Practitioners Association. Look for someone with experience in your industry and a clear fee structure. You can connect with a specialist listed on AccountingFirms to ensure you receive regulated advice.