Professional Company LiquidatorsServing Businesses in Hull

A company liquidator is a licensed insolvency practitioner who manages the closure of a company. Their role is to collect and sell company assets, settle outstanding debts with creditors, and distribute any remaining funds to shareholders. They also investigate the conduct of directors and ensure that the company is dissolved legally and correctly.

The cost of a liquidation varies depending on the size and complexity of the company. Fees are typically paid from the company's assets. In many cases, if there are no assets, a director may need to fund the process personally. It is important to obtain a clear, fixed fee quote before you agree to proceed with any appointment.

Yes, a solvent company can be placed into a Members' Voluntary Liquidation (MVL) to close down efficiently. If the company is insolvent but still trading, a Creditors' Voluntary Liquidation (CVL) is the appropriate route. You should seek advice to determine which procedure fits your situation and whether trading should cease before the appointment.

A Creditors' Voluntary Liquidation (CVL) is initiated by the directors and shareholders of the company. A compulsory liquidation is ordered by a court, usually following a petition from a creditor. In a CVL, the directors choose the liquidator, whereas in a compulsory liquidation, the court appoints an Official Receiver or another licensed practitioner.

When a company goes into liquidation, all employees are automatically dismissed. The liquidator will assess claims for unpaid wages, holiday pay, and redundancy. Certain payments may be recoverable from the National Insurance Fund. The liquidator provides employees with the necessary forms to make a claim for these statutory entitlements.

The length of the process depends on the complexity of the case. A simple Creditors' Voluntary Liquidation may be completed in six to twelve months. Cases involving complex asset sales, legal disputes, or missing records can take several years. The liquidator is responsible for concluding the process as quickly as possible while fulfilling all statutory duties.

Yes, there are several alternatives to liquidation. A Company Voluntary Arrangement (CVA) allows a company to repay debts over a period of time. Administration provides a moratorium from creditors while a restructuring is attempted. A formal restructuring plan or a simple negotiation with creditors might also be viable. You should always explore these options before deciding on liquidation.

Directors have a duty to cooperate fully with the liquidator. They must provide all company records, including financial statements and bank statements. They must also disclose any transactions that occurred before the liquidation. Failure to cooperate can result in personal liability, disqualification from acting as a director, or even criminal prosecution in serious cases.

No, once a company enters liquidation, you cannot continue to trade in the same company name. If you wish to start a new business, you must follow specific rules regarding the use of a 'phoenix' company. This often requires permission from the court or the liquidator, and you must not reuse the original company name without proper consent.

You will need to provide a full list of company assets and liabilities, a statement of affairs, and all relevant financial records. This includes bank statements, tax returns, debtor and creditor lists, and details of any company property. The liquidator will also require information about any recent transactions or transfers of assets.