Professional Company LiquidatorsServing Lanarkshire

A licensed insolvency practitioner acts as the liquidator, taking control of the company's assets, realising them for the benefit of creditors, investigating the company's affairs, and ensuring that the liquidation process is carried out legally and efficiently. They also handle creditor communications and final reporting.

The cost varies depending on the complexity of the case and the size of the company. Typically, fees are based on the work involved, either as a fixed fee or an hourly rate. In a creditors' voluntary liquidation, the liquidator's fees are paid from the company's assets, but you should discuss all costs upfront.

A director, shareholder, or creditor can apply to wind up a company. The most common route is a creditors' voluntary liquidation, initiated by the directors. However, a creditor can also petition the court for a compulsory liquidation if the company owes them money and fails to pay.

A Creditors' Voluntary Liquidation (CVL) is for insolvent companies, where debts cannot be paid. A Members' Voluntary Liquidation (MVL) is for solvent companies, where the directors swear a declaration of solvency. In an MVL, the liquidator distributes assets to shareholders after all debts are settled.

A simple creditors' voluntary liquidation might complete in six to twelve months, but complex cases with asset realisation or legal issues can take several years. The liquidator must finalise all matters, including selling assets and distributing funds to creditors, before the company is dissolved.

Once a liquidator is appointed, the directors' powers cease, and the liquidator takes control of the company. Trading can only continue if the liquidator decides it is beneficial for the creditors, for example, to sell stock as a going concern. Otherwise, trading stops immediately.

Alternatives include a company voluntary arrangement (CVA), which allows you to repay debts over time, or an administration process, which may rescue the business as a going concern. Informal arrangements with creditors or restructuring the company's finances might also be possible. Professional advice is essential.

In most cases, directors are not personally liable for company debts if they have acted properly. However, if you have given personal guarantees, you will be liable. Also, if there is evidence of wrongful trading or fraudulent activity, the liquidator can seek a court order making you personally responsible.

Employees are automatically made redundant when a company goes into liquidation. They may be entitled to claim redundancy pay and unpaid wages from the National Insurance Fund. The liquidator will provide them with the necessary forms and information to make these claims.

Yes, the liquidator has a duty to investigate the conduct of directors in the period leading up to liquidation. If they find evidence of unfit conduct, such as trading while insolvent or failing to keep proper records, they can report this to the Insolvency Service, which may lead to disqualification proceedings.