Professional Company LiquidatorsServing Launceston Businesses

A company liquidator is a licensed insolvency practitioner who manages the winding-up of a company's affairs. They collect and sell assets, settle creditor claims, and distribute any remaining funds to shareholders. They also investigate the conduct of directors and ensure that the process complies with insolvency law.

The cost of liquidation varies depending on the complexity of the company's financial affairs and the amount of work required. Typically, fees are based on time spent or a fixed fee agreed in advance. It is important to obtain a clear quotation from a licensed professional before proceeding.

Any limited company that is insolvent, meaning it cannot pay its debts as they fall due, may be placed into liquidation. This includes companies with significant liabilities or those facing legal action from creditors. Directors can propose a creditors' voluntary liquidation, or a creditor can petition the court for a compulsory liquidation.

The process typically begins with a board meeting and a resolution to wind up the company. A licensed insolvency practitioner is then appointed as liquidator. The liquidator takes control of the company's assets, notifies creditors, and realises the assets to make distributions. Finally, the company is dissolved and removed from the register.

The duration depends on the complexity of the case. A straightforward liquidation may be completed within six to nine months, while more complex cases involving asset realisation or investigations can take longer. The liquidator provides an estimated timeline at the outset.

Yes, a company with no assets can still be liquidated. This is often referred to as a 'no-asset liquidation'. The process is simpler and may involve minimal cost, but creditors still need to be notified. A licensed practitioner can advise on the most cost-effective approach.

Alternatives include a company voluntary arrangement (CVA), administration, or informal restructuring with creditors. A CVA allows the company to repay debts over time, while administration provides a moratorium from creditors. A licensed professional can help you assess which option is most suitable for your situation.

Directors must cooperate fully with the liquidator, provide accurate financial information, and not dispose of any company assets without permission. They must also avoid wrongful trading, which means continuing to trade while knowing the company is insolvent. Failure to comply can lead to personal liability.

Yes, in most cases a director can start a new company after liquidation, but there are restrictions. If the company was placed into compulsory liquidation due to misconduct, the director may be disqualified from acting as a director for a period. It is important to seek professional advice on any restrictions that apply.

Choose a licensed insolvency practitioner who is regulated by a recognised professional body. Look for someone with experience in your industry and a clear fee structure. You can connect with a specialist listed on AccountingFirms to discuss your needs and obtain quotes from qualified professionals.