Company Liquidators inLampeter Ceredigion

A company liquidator is a licensed insolvency practitioner who takes control of an insolvent company, sells its assets, distributes funds to creditors, and then dissolves the company. They also investigate the directors' conduct and report to creditors and regulatory bodies as required by law.

The cost of a Creditors' Voluntary Liquidation typically ranges from £4,000 to £8,000 plus VAT, depending on the complexity of the company's affairs. The fee is paid from the company's assets before creditors receive any distribution. In some cases, directors may need to contribute personally if assets are insufficient.

You are eligible if your company is insolvent, meaning it cannot pay its debts as they fall due, or its liabilities exceed its assets. The directors must pass a resolution to wind up the company, and at least 75% of creditors must agree to the liquidation at a meeting.

The initial meeting with creditors usually occurs within two to four weeks of instructing a liquidator. The liquidation itself typically lasts between six and twelve months, depending on how quickly assets are sold and claims are resolved. Complex cases may take longer, especially if there are legal disputes.

Alternatives include a Company Voluntary Arrangement (CVA), which allows you to repay debts over a period of time, or administration, which gives a company protection from creditors while a restructuring takes place. Informal arrangements with creditors can also be possible if the financial problems are short-term.

No, once a company enters liquidation, the liquidator takes over control and trading must cease immediately. The directors no longer have authority to act on behalf of the company. However, the liquidator may continue trading briefly if it is necessary to achieve a better return for creditors.

Employees are automatically made redundant when a company enters liquidation. They may be entitled to claim redundancy pay, unpaid wages, holiday pay, and pension contributions from the National Insurance Fund. The liquidator will provide the necessary forms and guidance to help employees make their claims.

Yes, you still need a licensed insolvency practitioner to handle the legal process of striking off and dissolving the company. Even with no assets, a liquidator will investigate the company's affairs and ensure that all statutory requirements are met. This protects you from future claims of wrongful trading.

A liquidator has a duty to act in the best interests of creditors and must follow strict legal guidelines. If a liquidator acts negligently or breaches their duties, they can be held liable. However, in practice, licensed practitioners are regulated and carry professional indemnity insurance to cover any potential claims.

You will need to provide the company's financial records, including bank statements, tax returns, debtor and creditor lists, and details of any assets. You should also be prepared to explain the reasons for insolvency and provide a statement of affairs. The liquidator will use this information to conduct the liquidation efficiently.