Professional Company LiquidatorsServing Loughborough Businesses

The cost of a creditors' voluntary liquidation typically ranges from £4,000 to £8,000 depending on the complexity of the case. This fee covers the liquidator's work, statutory advertising, and preparation of final accounts. You should request a fixed fee quotation before agreeing to any appointment.

A company is eligible for liquidation if it is insolvent, meaning it cannot pay its debts as they fall due, or its liabilities exceed its assets. The directors must pass a resolution and obtain approval from 75% of shareholders. A licensed insolvency practitioner must be appointed to act as liquidator.

The process begins with a meeting of directors to assess the financial position. If liquidation is agreed, the directors must convene a shareholder meeting to pass a resolution. A creditors' meeting is then held within 14 days, where the liquidator is formally appointed and the statement of affairs is presented.

A straightforward creditors' voluntary liquidation usually concludes within 12 to 18 months. This timeframe allows the liquidator to realise assets, investigate the company's affairs, and distribute funds to creditors. Complex cases with substantial assets or legal disputes may take considerably longer to finalise.

Yes, several alternatives exist, including a company voluntary arrangement (CVA), administration, or informal restructuring. A CVA allows a company to repay debts over an agreed period whilst continuing to trade. Administration provides protection from creditors whilst a rescue plan is developed. Your specific circumstances will determine which option is most suitable.

When a company enters liquidation, employees are automatically dismissed from the date of the winding-up order or the resolution to wind up. They may be entitled to claim redundancy pay, unpaid wages, and holiday pay from the National Insurance Fund. The liquidator will provide the necessary forms and guidance to affected employees.

No, once a company enters creditors' voluntary liquidation, the directors' powers cease, and the liquidator takes control of the business. Trading cannot continue unless the liquidator decides to do so for a limited period to sell the business as a going concern. This is rare and requires the liquidator's consent.

Directors must cooperate fully with the liquidator and provide all necessary information. If misconduct is found, such as wrongful trading or fraudulent activity, directors may face personal liability, disqualification, or even criminal prosecution. However, if directors have acted responsibly, there are typically no personal consequences beyond the loss of the company.

Company assets are sold by the liquidator, and the proceeds are distributed according to a strict statutory order. Secured creditors with fixed charges are paid first, followed by preferential creditors such as employees. Unsecured creditors are paid next, and any remaining funds are distributed to shareholders. Most liquidations result in no payment to unsecured creditors.

You must provide a statement of affairs listing all assets, liabilities, and creditor details. The liquidator will also require access to accounting records, bank statements, contracts, and correspondence with creditors. You must cooperate fully and answer any questions about the company's trading history and financial decisions.