Professional Company LiquidatorsServing Markfield Businesses

The cost varies depending on the complexity of your company's affairs, the number of creditors, and the value of assets. Most licensed insolvency practitioners offer a fixed fee or an hourly rate. You should request a detailed written quote before agreeing to any engagement, ensuring there are no hidden charges.

Your company is generally 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 voluntarily, and at least 75 percent of shareholders must agree. A licensed insolvency practitioner will assess your financial position to confirm eligibility.

The process begins with a meeting of directors to pass a resolution for winding up. You then convene a creditors' meeting, where they vote on the appointment of a liquidator. The chosen practitioner takes control of the company's assets, notifies all creditors, and begins the realisation process.

A simple liquidation with few assets and creditors can be completed in six to nine months. More complex cases involving disputes, unravelling transactions, or recovering assets may take several years. The liquidator will provide an estimated timeline at the outset based on your specific circumstances.

Once a winding-up order is made or a creditors' voluntary liquidation resolution is passed, directors lose their powers to trade. The appointed liquidator takes over the management of the company's affairs. Trading without authority after this point could result in personal liability for any new debts incurred.

Alternatives include a Company Voluntary Arrangement to repay debts over time, administration to restructure the business, or a formal restructuring plan. For smaller companies, a plan to pay off creditors informally may be possible. An insolvency practitioner can advise on which option best protects your business and its stakeholders.

Employees are automatically dismissed once the company enters liquidation. They become preferential creditors for unpaid wages, holiday pay, and pension contributions. The liquidator will provide them with the necessary forms to claim any statutory redundancy payments from the National Insurance Fund, which covers certain entitlements.

Directors are generally not personally liable for company debts if they have acted properly and within the law. However, personal liability can arise if you have given personal guarantees, traded wrongfully, or misused company funds. The liquidator will investigate your conduct and may seek a contribution if misconduct is found.

A director can apply to strike off only if the company is solvent and has not traded for three months. If the company has debts, striking off is not appropriate because it does not deal with creditor claims. Creditors can object to the application, and directors may face penalties for misuse of the process.

You should bring the company's statutory books, including registers of members and directors, recent management accounts, a schedule of creditors and debtors, details of any assets, and records of any loans or guarantees. Providing complete and accurate information at the start helps the liquidator proceed efficiently and reduces delays.