Professional Company Liquidators inLeatherhead for Your Business

The cost varies depending on the complexity of your company's affairs, the number of creditors, and the assets involved. Typically, a licensed insolvency practitioner charges a fixed fee or an hourly rate. You should ask for a detailed quote before proceeding, ensuring it includes all statutory costs and disbursements.

A company is insolvent if it cannot pay its debts as they fall due, or if its liabilities exceed its assets. Common indicators include unpaid supplier invoices, mounting tax arrears, or a winding-up petition. A licensed insolvency practitioner can assess your financial position and confirm whether formal insolvency is necessary.

You must pass a board resolution and then a shareholder resolution to wind up the company voluntarily. Once approved, a licensed insolvency practitioner is appointed as liquidator. They will take control of company assets, notify creditors, and distribute any proceeds according to legal priority.

The duration depends on the complexity of the case. A straightforward liquidation with few assets and creditors might be concluded within six to nine months. More complex cases with legal disputes or asset realisation can take over a year. Your liquidator will provide a timeline based on your specific circumstances.

Once a liquidator is appointed, your powers as director cease. The liquidator takes control of the company and its assets. You cannot continue trading unless the liquidator specifically authorises it, which is rare and usually only to complete contracts that benefit creditors.

Alternatives include a company voluntary arrangement (CVA) to repay debts over time, administration to allow restructuring, or a formal strike-off if the company is solvent. Each option has different implications for directors and creditors. A licensed insolvency practitioner can explain which route is most suitable for your situation.

In most cases, directors are not personally liable for company debts. However, personal liability can arise if you have given personal guarantees, traded wrongfully, or misused company funds. A liquidator will investigate your conduct and may take action if there is evidence of misfeasance.

Employees are made redundant once the company enters liquidation. They may be entitled to statutory redundancy pay, notice pay, and unpaid wages. These claims are paid from the National Insurance Fund, subject to statutory limits, and the liquidator will assist employees in making claims.

Yes, you can liquidate a company with no assets, but it may be more cost-effective to apply for a strike-off if the company is solvent and has no debts. If the company is insolvent, a creditors' voluntary liquidation is still possible, but the liquidator's fees may be paid from director contributions or other sources.

Look for a practitioner who is licensed by a recognised professional body, such as the Insolvency Practitioners Association or the Institute of Chartered Accountants. Check their experience with similar companies and ask for references. You can also speak with a specialist listed on AccountingFirms to ensure you receive professional, regulated advice.