Professional Company LiquidatorsServing Llandeilo Businesses

The cost varies depending on the complexity of the case and the size of the company's asset base. Creditors' voluntary liquidation often has fees paid from company assets, but a director may need to contribute if assets are insufficient. Always request a clear fee structure before proceeding.

A company is eligible if it is insolvent, meaning it cannot pay its debts as they fall due. The directors must pass a resolution to wind up the company, and a majority of shareholders must approve it at a general meeting. A licensed insolvency practitioner must then be appointed to act as liquidator.

The initial meeting with creditors usually takes place within a few weeks of the directors' decision. The liquidation itself can take several months to a year or more, depending on how quickly assets are sold and any investigations are concluded. The liquidator will provide a timeline based on the specific circumstances.

Employees are made redundant when a company enters liquidation. They may be entitled to claim statutory redundancy pay, unpaid wages, and holiday pay from the National Insurance Fund. The liquidator will provide the necessary forms and guidance to help employees make these claims promptly.

Yes, there are several alternatives, including a company voluntary arrangement (CVA) to repay debts over time, or formal restructuring through administration. Sometimes a simple negotiation with creditors can lead to a payment plan. A licensed professional can assess which route is most suitable for your company's situation.

No, once a compulsory or creditors' voluntary liquidation has begun, the liquidator takes control of the company. Trading can only continue if the liquidator decides it is necessary to achieve a better outcome for creditors, such as completing a contract. Directors must not continue trading without the liquidator's permission.

Directors must cooperate fully with the liquidator by providing all company records, financial statements, and explanations of transactions. They must also disclose any assets that belong to the company and avoid disposing of any property without consent. Failure to cooperate can result in personal liability or disqualification.

A compulsory liquidation is ordered by a court, usually following a petition from a creditor. A voluntary liquidation is initiated by the directors and shareholders without court involvement. Compulsory liquidation often follows a failed statutory demand or court judgment, whereas voluntary liquidation is a proactive decision by the directors.

The liquidator will take control of all company assets, including stock, equipment, and property. They will arrange for an independent valuation and then sell the assets to realise funds for creditors. Secured creditors with a fixed charge may have priority over certain assets, but the liquidator manages the overall distribution.

Generally, you will not be personally liable for company debts if you have acted properly and within the law. However, personal liability can arise if you have given personal guarantees, traded whilst insolvent, or misused company funds. The liquidator can pursue directors for repayment if wrongful or fraudulent trading is identified.