Expert Company LiquidatorsServing Hove Businesses

The cost of company liquidation in Hove typically ranges from £4,000 to £8,000 plus VAT, depending on the complexity of your company's affairs. Creditors' voluntary liquidation often costs more than a members' voluntary liquidation because of additional statutory requirements. Always obtain a fixed-fee quote from a licensed practitioner before proceeding.

Any limited company registered in England or Wales can enter liquidation if it is insolvent, meaning it cannot pay its debts as they fall due. Directors can propose a creditors' voluntary liquidation, or creditors can petition for a compulsory liquidation. A licensed insolvency practitioner will assess your eligibility and recommend the most appropriate route.

The process begins with a meeting of directors to pass a resolution for liquidation. A licensed insolvency practitioner is appointed as liquidator, who then takes control of the company's assets, notifies creditors, and distributes proceeds according to statutory priority. Finally, the company is dissolved and removed from the Companies House register.

A creditors' voluntary liquidation typically takes between 6 and 12 months to complete, depending on the complexity of the company's affairs. A members' voluntary liquidation can be quicker, often completing within 3 to 6 months. Compulsory liquidation may take longer due to court proceedings. Your liquidator will provide a timeline estimate after initial assessment.

Yes, alternatives include company voluntary arrangement (CVA), administration, or informal arrangements with creditors. A CVA allows a company to repay debts over a period while continuing to trade. Administration provides protection from creditors while a restructuring is attempted. A licensed insolvency practitioner can explain which option is best for your situation.

Directors must cooperate fully with the liquidator, provide all company records and accounts, and disclose any transactions that may be voidable. They must not hide assets or prefer certain creditors. Failure to comply can result in personal liability, disqualification, or even criminal prosecution. Seeking professional advice early helps you fulfil these duties correctly.

Once a company enters liquidation, trading must cease immediately except for the purpose of winding down operations. The liquidator takes control of the company's affairs and may continue trading briefly to sell stock or complete contracts. Directors cannot continue trading without the liquidator's consent, as this could lead to personal liability for new debts.

Employees are automatically dismissed when a company enters liquidation. They may be entitled to claim redundancy pay, unpaid wages, holiday pay, and notice pay from the National Insurance Fund. The liquidator will provide employees with the necessary forms and guidance to make claims. Employees are preferential creditors for certain unpaid amounts.

Yes, directors can appoint a licensed insolvency practitioner to act as liquidator, provided they are qualified and independent. This is done through a creditors' voluntary liquidation process, where directors propose the liquidator and creditors vote on the appointment. It is essential to choose a reputable practitioner who is authorised by a recognised professional body.

A Creditors' Voluntary Liquidation (CVL) is used when a company is insolvent and cannot pay its debts. A Members' Voluntary Liquidation (MVL) is used when a company is solvent and directors wish to close it down, often for tax efficiency. Both require a licensed insolvency practitioner, but the processes and outcomes differ significantly.