Professional Company Liquidators inKnowle for Your Business

A company liquidator is a licensed insolvency practitioner who manages the closure of an insolvent company. They collect and sell assets, agree claims with creditors, investigate the conduct of directors, and distribute any available funds according to the legal priority order. Once the process is complete, the company is formally dissolved.

Costs vary depending on the size and complexity of the company. Most liquidators charge a fixed fee or an hourly rate, and the fee is paid from the company's assets, not from your personal funds. Creditors must approve the fees. You should obtain a clear written quote before instructing any professional.

Any director of an insolvent company can appoint a liquidator through a creditors' voluntary liquidation, provided the company is unable to pay its debts as they fall due. Alternatively, a creditor can petition the court for a compulsory liquidation. A licensed insolvency practitioner must be appointed in all cases.

A straightforward creditors' voluntary liquidation typically takes between six and twelve months to complete. Complex cases with many assets, legal disputes, or director conduct issues may take longer. The liquidator will provide an estimated timeline at the outset, but this can change if unexpected matters arise.

Alternatives include a company voluntary arrangement (CVA), which allows you to repay debts over a period while continuing to trade, or administration, which gives breathing space from creditors while a restructuring is attempted. A licensed insolvency practitioner can assess which option is most suitable for your company's specific circumstances.

A creditors' voluntary liquidation is initiated by the directors when the company is insolvent, and the shareholders pass a resolution to wind up. A compulsory liquidation is forced by a creditor through a court order, often following a winding-up petition. The process and outcomes differ significantly, so professional advice is essential.

Once a decision has been made to liquidate, you must stop trading immediately, except where the liquidator specifically authorises continued trading to preserve asset value or complete contracts. Continuing to trade after you know the company is insolvent can lead to personal liability for wrongful trading.

Employees are automatically made redundant when a company enters liquidation. They may be entitled to claim statutory redundancy pay, unpaid wages, holiday pay, and other arrears from the National Insurance Fund, which is a government scheme. The liquidator will provide employees with the necessary claim forms and guidance.

Generally, directors are not personally liable for company debts, as the company is a separate legal entity. However, if you have given personal guarantees, you will be responsible for those debts. Also, if you have acted wrongfully or fraudulently, a court may order you to contribute to the company's assets.

Look for a licensed insolvency practitioner who is regulated by a recognised professional body, such as the Insolvency Practitioners Association or the Institute of Chartered Accountants. Check their experience with similar companies, read client testimonials, and ensure they offer a clear fee structure. A consultation should be provided before you commit.