Professional Company LiquidatorsServing Highland Businesses

The cost varies based on company complexity, asset value, and creditor structure. A licensed insolvency practitioner will provide a fixed fee quote after an initial assessment. Typically, fees range from £4,000 to £8,000 plus VAT, but this can be higher for complex cases. Always obtain a written quotation before proceeding.

Any company that is insolvent, meaning it cannot pay its debts as they fall due, may be eligible for creditors' voluntary liquidation. This process requires a director's meeting to pass a resolution, followed by a creditors' meeting. The company must have sufficient assets to fund the liquidation process itself, or directors may need to consider alternative funding.

The process begins with an initial consultation where the insolvency practitioner assesses your financial position. If liquidation is appropriate, you convene a board meeting and then a shareholders' meeting to pass a resolution. Within 14 days, a creditors' meeting is held, where the liquidator is formally appointed. The entire process typically takes four to six weeks from start to finish.

A straightforward creditors' voluntary liquidation usually completes within six to twelve months. However, complex cases involving asset realisation, legal disputes, or investigations may take longer. The liquidator must finalise all creditor claims, sell assets, and distribute funds before applying for dissolution. Your practitioner will provide a realistic timeline after reviewing your company's circumstances.

Once a company enters liquidation, the liquidator takes control and trading generally ceases. However, the liquidator may continue trading for a short period to complete work in progress or sell assets as a going concern. Directors cannot continue trading after liquidation begins without the liquidator's express permission, as this could lead to personal liability for debts incurred.

Alternatives include a company voluntary arrangement (CVA), administration, or informal restructuring with creditors. A CVA allows you to repay debts over a period while retaining control. Administration provides a moratorium from creditors while a rescue plan is attempted. Your insolvency practitioner will explain which option best fits your financial situation and long-term objectives.

Employees are automatically made redundant when a company enters liquidation. The liquidator becomes responsible for settling employee claims, including unpaid wages, holiday pay, and redundancy pay. Employees may be able to claim certain statutory payments from the National Insurance Fund if the company lacks assets. The liquidator will provide the necessary forms and guidance to affected staff.

Directors are generally not liable for company debts unless they have given personal guarantees, or they have acted wrongfully. Wrongful trading occurs when a director continues trading while knowing the company cannot avoid insolvency. Personal liability can also arise from fraudulent trading, misfeasance, or breach of fiduciary duty. A licensed practitioner will advise on your specific exposure.

You must provide the company's financial records, including bank statements, ledgers, and tax returns. Also required are details of assets and liabilities, a list of creditors, and any relevant contracts or leases. The liquidator will need a statement of affairs, which you prepare with their assistance. Accurate and complete information ensures the process runs smoothly and efficiently.

Creditors do not need to agree to a creditors' voluntary liquidation, as it is initiated by the directors and shareholders. However, creditors are invited to a meeting where they can question the directors and the proposed liquidator. If creditors do not approve the nominated liquidator, they may appoint an alternative. The process is designed to be transparent and fair to all parties involved.