Expert Company LiquidatorsServing Lancs Businesses

A licensed insolvency practitioner (IP) takes control of the company's affairs, realises assets, agrees claims with creditors, and distributes any funds in a statutory order. They also investigate the directors' conduct and report to the relevant authorities. Their role is to ensure the process is fair and transparent for all parties involved.

Costs vary depending on the complexity of the case, the size of the company, and the work involved. Fees are typically based on time spent or a percentage of realisations. Creditors' voluntary liquidation (CVL) fees are often paid from company assets, but you should discuss all costs upfront and obtain a clear written quotation before proceeding.

Any limited company that is insolvent – meaning it cannot pay its debts as they fall due – may be eligible. This includes companies facing a winding-up petition, those with significant creditor pressure, or those where the directors have concluded that the business cannot continue. The process must be instigated by a formal resolution and appointment of an IP.

The directors hold a board meeting to pass a resolution to wind up, then call a shareholder meeting to approve the resolution. A meeting of creditors is then convened to confirm the appointment of the liquidator. The IP takes control of assets, notifies all creditors, and begins the statutory process of realisation and distribution.

The initial appointment can happen within a few weeks if all paperwork is in order. The full process, including asset realisation and creditor distributions, may take between six months and two years, depending on the complexity of the case, the number of assets, and whether any legal disputes arise. Simple cases may conclude sooner.

Yes, alternatives include a company voluntary arrangement (CVA) to repay debts over time, administration to attempt a rescue, or a formal restructuring. Sometimes an informal agreement with creditors or a sale of the business as a going concern can be arranged. A licensed IP can advise on the most appropriate route based on your circumstances.

Directors must cooperate fully with the liquidator, provide all relevant books and records, and disclose all company assets and liabilities. They must not conceal assets or destroy records. They also have a duty to avoid wrongful trading – continuing to trade when they know the company is insolvent – which can lead to personal liability.

In most cases, directors of a limited company are not personally liable for debts unless they have given personal guarantees, acted fraudulently, or been involved in wrongful trading. The liquidator will investigate and may seek a court order if misconduct is found. You should seek legal advice if you are concerned about personal exposure.

Once the decision is made, the process can begin within days. The directors must pass a resolution, and then a meeting of creditors is convened – this can be done within 14 days. An experienced IP can guide you through the paperwork and ensure all statutory requirements are met without unnecessary delay.

Employees are made redundant when a liquidator is appointed. They may be entitled to claim redundancy pay, notice pay, and other arrears from the National Insurance Fund. The liquidator will provide the necessary forms and advise on the claims process. Employees become preferential creditors for certain amounts owed to them.