Credible Company LiquidatorsBased In Liskeard

The cost varies depending on the complexity of your company’s affairs, the number of creditors, and the work required to realise assets. Most licensed practitioners offer a fixed fee for a standard creditors’ voluntary liquidation, which covers the statutory duties and the final meeting. You should always request a detailed written quotation before you agree to any appointment.

Any insolvent company can enter a creditors’ voluntary liquidation, provided the directors make a statutory declaration of insolvency and the shareholders pass a resolution to wind up the company. The procedure is available to small and large companies alike, as long as the majority of creditors approve the appointment of the nominated liquidator at the initial meeting.

The initial appointment usually happens within a few weeks of the decision to liquidate, once all necessary paperwork is prepared. The liquidator then realises assets, investigates the directors’ conduct, and agrees claims with creditors. The final meeting is typically held within six to twelve months, although complex cases may take longer to conclude.

Yes, directors can continue to trade whilst they are preparing the liquidation, provided they act in the best interests of creditors. However, you must not take on new credit that you cannot repay, and you should stop trading as soon as the decision to liquidate is made. Continuing to trade without a realistic prospect of payment may lead to personal liability for wrongful trading.

There are several alternatives, including a company voluntary arrangement, which allows you to repay debts over a set period, or a formal restructuring of the balance sheet. You might also consider a sale of the business as a going concern, or an administration procedure if you need protection from creditors whilst you attempt a rescue. A licensed professional can advise on which option is most suitable.

The liquidator will assess the company’s ability to continue trading, and if not, employees will be made redundant. The liquidator will then deal with any claims for unpaid wages, holiday pay, and redundancy payments, which may be recoverable from the National Insurance Fund. Employees are considered preferential creditors for certain amounts, so they may receive a dividend before unsecured creditors.

No, the whole point of a limited company is that the shareholders and directors are not personally liable for the company’s debts, provided you have not given a personal guarantee or acted wrongfully. If you have acted in good faith and fulfilled your duties, the liquidation will release you from any further responsibility for the company’s liabilities.

You will need to provide a full list of the company’s assets and liabilities, including details of any outstanding loans, creditor balances, and any property or equipment owned by the business. You should also bring details of any charges over assets, such as debentures or floating charges, and any contracts that may affect the winding up process.

Yes, if the liquidator finds that a director has taken money out of the company without proper authorisation, or has traded whilst insolvent and increased the deficit, they may issue a claim for repayment. This is known as a misfeasance claim, and it can also apply to shadow directors or anyone who has acted in a similar capacity.

The creditors’ meeting is where the creditors are given the opportunity to approve the appointment of the liquidator nominated by the directors, or to nominate their own choice. The meeting is also used to receive a statement of affairs from the directors, which sets out the company’s financial position, and to consider whether a liquidation committee should be formed.