Professional Company LiquidatorsServing Horsham Businesses

A members' voluntary liquidation is used when a company is solvent and directors can make a statutory declaration of solvency. A creditors' voluntary liquidation is used when the company is insolvent and cannot pay its debts. The latter requires a meeting of creditors and involves a licensed insolvency practitioner acting as liquidator to realise assets and distribute funds.

Fees vary based on the complexity of the case, the size of the company, and the type of liquidation. For a creditors' voluntary liquidation, fees are often taken from the company's assets. For a members' voluntary liquidation, fees are typically agreed as a fixed quote. Always request a written breakdown of costs before instructing a practitioner.

A simple creditors' voluntary liquidation may complete in six to twelve months, depending on asset realisation and creditor claims. A members' voluntary liquidation can sometimes finish sooner if the company has few assets and no complex issues. Delays can occur if there are investigations, legal disputes, or missing records.

Once a decision to liquidate is made, you should stop trading immediately, except for actions necessary to preserve asset value. Trading while insolvent can lead to personal liability for wrongful trading. A licensed insolvency practitioner will advise you on the exact point at which you must cease trading to avoid legal consequences.

Alternatives include a company voluntary arrangement (CVA), administration, or informal negotiation with creditors to agree a repayment plan. A CVA allows the company to continue trading while paying debts over time. Administration provides a moratorium from creditor action while a restructuring is attempted. Each option has different implications for directors and creditors.

Generally, directors are not personally liable for company debts if they have acted properly and not given personal guarantees. However, if you have given a personal guarantee for a loan or lease, the creditor can pursue you for that debt. Also, if wrongful trading or misfeasance is found, a court may order you to contribute to company assets.

Employees are made redundant on the date of liquidation. They become preferential creditors for unpaid wages, holiday pay, and pension contributions. The liquidator will handle redundancy claims, and employees may be able to claim certain payments from the National Insurance Fund, which provides a safety net for statutory entitlements.

Yes, a liquidator has a duty to investigate the conduct of directors in the period leading up to liquidation. This includes reviewing transactions at an undervalue, preferences, and any breaches of duty. If misconduct is found, the liquidator can report it to the Insolvency Service, which may lead to disqualification proceedings or personal liability claims.

You must provide the company's books and records, including financial statements, bank statements, tax returns, and details of assets and liabilities. You must also provide a list of creditors and any relevant contracts. The liquidator will require your full cooperation, including answering questions about the company's affairs and providing a statement of affairs.

Yes, but if the company has no assets to cover the liquidator's fees, creditors may be unwilling to fund the process. In such cases, a director may consider applying to strike the company off the register if it meets certain conditions, such as not trading and having no assets. However, striking off does not formally investigate affairs and may not be suitable if there are creditor claims.