Professional Company LiquidatorsServing Iron Acton

A licensed liquidator takes control of the company, realises its assets, settles debts in the correct order, and investigates the directors’ conduct. They then distribute any remaining funds to creditors and formally close the company. Their role is to ensure the process is fair, transparent, and legally compliant from start to finish.

Costs vary depending on the size and complexity of the company, but most liquidators charge a fixed fee for a standard creditors’ voluntary liquidation. You should always request a written quote before proceeding. The fee is typically paid from company assets, but if assets are insufficient, directors may need to fund the process personally.

Any director of a limited company that is insolvent can propose a creditors’ voluntary liquidation. You must pass a board resolution and then call a meeting of shareholders to approve the winding up. A licensed insolvency practitioner must be appointed, and they will then convene a meeting of creditors to confirm the appointment.

A straightforward creditors’ voluntary liquidation is often completed within six to nine months. However, the exact timeline depends on the complexity of the company’s affairs, the number of creditors, and whether any assets need to be sold. A simple case with no disputes can be concluded more quickly, whilst a complex case may take longer.

Yes, there are several alternatives, including a company voluntary arrangement, administration, or informal negotiations with creditors. A company voluntary arrangement allows you to repay debts over a period whilst continuing to trade. Administration provides a moratorium from creditor action, giving time to restructure or sell the business as a going concern.

Voluntary liquidation is initiated by the directors or shareholders, whereas compulsory liquidation is ordered by a court, usually following a creditor’s petition. In a voluntary liquidation, the directors choose the liquidator, but in a compulsory case, the court appoints an official receiver. The process and outcomes differ significantly, so professional advice is essential.

Generally, no, because a limited company is a separate legal entity. However, personal liability can arise if you have given personal guarantees, or if you have acted wrongfully or fraudulently. A liquidator will investigate your conduct, and if they find evidence of wrongful trading or misfeasance, they may seek a contribution from you personally.

Once you have decided to liquidate, you should stop taking on new credit and trading beyond what is necessary to preserve asset value. Continuing to trade whilst insolvent could lead to personal liability for wrongful trading. It is important to seek professional advice immediately and to act in the best interests of creditors from that point onwards.

Employees are automatically made redundant when a company enters liquidation, unless a buyer is found for the business. They may be entitled to claim redundancy pay, unpaid wages, and holiday pay from the National Insurance Fund. The liquidator will provide each employee with the necessary forms and guidance on how to make a claim.

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, transparent fees, and a clear communication style. It is also wise to ask for references and to compare proposals from at least two different practitioners.