Expert Company LiquidatorsServing Liss Businesses

The cost of liquidation varies depending on the complexity of your company's affairs, the number of creditors, and the asset base. Creditors' voluntary liquidation is often funded from the company's assets, while a director may need to contribute personally for a solvent liquidation. A licensed practitioner will provide a fixed-fee quote after an initial review.

Eligibility depends on whether your company is solvent or insolvent. For a creditors' voluntary liquidation, the company must be unable to pay its debts as they fall due. For a members' voluntary liquidation, the directors must swear a statutory declaration of solvency. A licensed insolvency practitioner will assess your financial position to confirm the correct route.

The process begins with a confidential consultation with a licensed insolvency practitioner. They will review your financial records and advise on the appropriate procedure. For a creditors' voluntary liquidation, you must call a board meeting and then a creditors' meeting to approve the appointment. The liquidator then takes control of assets and distributes proceeds to creditors.

The duration depends on the complexity of the case. A simple creditors' voluntary liquidation may be concluded within six to twelve months, while more complex cases with asset realisation or legal disputes can take several years. The liquidator will provide a timeline estimate after their initial review of your company's affairs.

Alternatives include administration, which aims to rescue the company as a going concern, or a company voluntary arrangement (CVA) that allows you to repay debts over a period. An informal restructuring with creditors may also be possible. A licensed insolvency practitioner will explain the pros and cons of each option in relation to your specific circumstances.

Once a liquidation order is made or a liquidator is appointed, the directors' powers cease. The liquidator takes control of the company's affairs, and trading is only possible with the liquidator's consent and under their supervision. Continuing to trade without approval could lead to personal liability for debts incurred during that period.

Employees are automatically dismissed when a company enters liquidation, unless the liquidator retains them temporarily to assist with asset realisation. They may be entitled to redundancy pay, notice pay, and unpaid wages from the National Insurance Fund. The liquidator will provide guidance on employee claims and their priority in the distribution of assets.

Directors must cooperate fully with the liquidator, provide all company records and financial information, and not dispose of any assets without consent. They must also avoid wrongful trading, which means continuing to trade while knowing the company cannot avoid insolvency. Failure to comply can result in personal liability or disqualification proceedings.

A members' voluntary liquidation (MVL) is used for solvent companies where directors swear a statutory declaration of solvency. Creditors are paid in full, and the process is quicker and cheaper. A creditors' voluntary liquidation (CVL) is for insolvent companies, where creditors control the process and a liquidator is appointed to realise assets and distribute funds.

You will need to provide up-to-date financial statements, a list of creditors and amounts owed, details of company assets and liabilities, and any relevant contracts or leases. The liquidator will also require information about directors' loans, guarantees, and any recent transactions that may be scrutinised. A complete and accurate picture ensures a smooth process.