Professional Company LiquidatorsServing Markyate

The cost of liquidation varies depending on the complexity of the company's affairs, the number of creditors, and the work required to realise assets. Typically, fees are paid from the company's assets, but if there are insufficient assets, a director may need to fund the process. A licensed practitioner can provide a fixed fee quote after an initial review.

Any limited company that is insolvent – meaning it cannot pay its debts as they fall due – can be placed into liquidation. This includes companies with significant debts, ongoing legal claims, or those that have ceased trading. The decision to liquidate is often made by the directors or forced by creditors through a court petition.

The duration of a liquidation depends on the complexity of the case. A straightforward creditors' voluntary liquidation might be completed within six to twelve months, while cases involving litigation or complex asset recovery can take several years. The liquidator's role includes investigating the company's affairs and realising assets, which can extend the timeline.

Alternatives include a company voluntary arrangement (CVA), which allows the company to repay debts over time, or administration, which provides a moratorium from creditors while a rescue plan is attempted. Informal arrangements with creditors might also be possible. A licensed practitioner can assess whether any of these options are viable for your specific circumstances.

When a company goes into liquidation, employees are automatically dismissed. They may be entitled to claim redundancy pay, unpaid wages, and holiday pay from the National Insurance Fund, but only if they qualify. The liquidator will provide the necessary documentation to help employees make these claims. It is important to seek advice from the liquidator or a legal professional.

Yes, it is possible to liquidate a company with no assets, but the process may be funded by the directors or shareholders. In such cases, a liquidator will still be appointed to handle the legal formalities, but the fees must be covered. This is often referred to as a 'no-asset' liquidation and is still a valid way to close an insolvent company.

A liquidator is a licensed insolvency practitioner who takes control of the company, realises its assets, distributes the proceeds to creditors, and investigates the conduct of directors. They also handle legal claims and ensure that the company is struck off the register. Their primary duty is to act in the best interests of creditors while complying with statutory obligations.

Directors are generally not personally liable for company debts, but there are exceptions. If you have given personal guarantees, or if you have traded wrongfully or fraudulently, you could be held responsible. A liquidator will investigate your conduct and may take action to recover funds if they find evidence of misconduct. Seeking early advice can help mitigate risks.

You will need to provide the company's financial records, including accounts, bank statements, tax returns, and details of any assets and liabilities. You should also provide a list of creditors and any relevant contracts or agreements. The liquidator will use this information to assess the company's affairs and to prepare the necessary documentation for the liquidation process.

To start a creditors' voluntary liquidation, the directors must call a board meeting and then a shareholder meeting to pass a resolution for voluntary winding up. A licensed insolvency practitioner must be appointed as liquidator. Alternatively, a creditor can petition the court for a compulsory liquidation. It is advisable to consult a professional early to ensure the correct procedure is followed.