Company Liquidators in MedwayProfessional Guidance for Medway

A company liquidator is a licensed insolvency practitioner who manages the closure of a company. They take control of assets, sell them, distribute funds to creditors, and ensure that all legal requirements are met. They also investigate the conduct of directors and report to relevant authorities if necessary.

The cost varies depending on the complexity of the case and the size of the company. Fees are typically based on time spent or a percentage of asset realisations. A licensed professional will provide a clear fee estimate before you agree to proceed, and you should ask about any additional costs.

Yes, it is possible to liquidate a company that has no assets. In such cases, the liquidator may still charge a fee, which could be paid by the directors or shareholders. This is often called a 'no-asset liquidation' and is common when a company has ceased trading.

Solvent liquidation, often called a members' voluntary liquidation, is used when a company can pay its debts in full. Insolvent liquidation, such as creditors' voluntary liquidation, is used when the company cannot pay its debts. The process and implications for directors differ significantly between the two.

The length of time depends on the complexity of the case. A straightforward creditors' voluntary liquidation may take several months to complete, whilst a complex case with many assets or disputes could take longer. Your liquidator will give you an estimated timeline at the outset.

Alternatives include administration, a company voluntary arrangement (CVA), or informal negotiation with creditors. In some cases, a turnaround plan might save the business. A licensed insolvency practitioner can assess your situation and recommend the most appropriate course of action.

Generally, directors are not personally liable for company debts, but there are exceptions. If you have given personal guarantees, or if you have acted wrongfully or fraudulently, you could be held personally responsible. A liquidator will investigate and advise on any potential issues.

Employees are made redundant when a company goes into liquidation. They may be entitled to claim redundancy pay and other statutory payments from the government's insolvency fund. The liquidator will provide employees with the necessary forms and information about their rights.

No, once a company enters liquidation, trading must cease immediately, except for actions that the liquidator considers necessary for the beneficial disposal of assets. Continuing to trade after liquidation is a criminal offence and could lead to personal liability for the director.

You should choose a licensed insolvency practitioner who is authorised by a recognised professional body. Look for someone with experience in your industry and a clear fee structure. You can connect with a specialist listed on AccountingFirms to get guidance from a regulated professional.