Professional Company LiquidatorsGuidance Across Monmouth

The cost of a Creditors' Voluntary Liquidation (CVL) is not fixed and varies depending on the complexity of your company's affairs. Generally, fees are taken from the company's assets once they are realised. If there are no assets, a director or a third party may need to fund the process. You should obtain a clear, fixed fee quote from a licensed insolvency practitioner before you proceed.

Your company is eligible for a Creditors' Voluntary Liquidation if it is insolvent, meaning it cannot pay its debts as they fall due, or its liabilities exceed its assets. The decision to liquidate must be approved by the shareholders and a meeting of creditors must be held. An insolvency practitioner will assess your company's financial position to confirm eligibility and recommend the most appropriate course of action.

The process begins with the director convening a board meeting to pass a resolution to wind up the company. Subsequently, shareholders must pass a special resolution, and a meeting of creditors is held to confirm the appointment of the liquidator. The liquidator then takes control of the company's assets, investigates its affairs, and distributes funds to creditors in the statutory order.

The duration of a liquidation varies significantly. A straightforward case with few assets and creditors might be concluded within six to twelve months. However, complex cases involving asset realisation, legal disputes, or director conduct investigations can take several years to complete. The liquidator will provide a timeline estimate at the outset, but this is subject to change based on circumstances.

Yes, several alternatives exist depending on your company's viability. If the business is fundamentally sound but has cash flow issues, a Company Voluntary Arrangement (CVA) might allow you to repay debts over time. If the company is not viable, a solvent dissolution might be possible if it can repay all debts. For larger companies, administration provides a moratorium from creditors while a rescue attempt is made.

When a company enters liquidation, all employees are automatically dismissed from the date the winding-up order is made. The liquidator becomes responsible for the company's affairs. Employees who are owed wages, holiday pay, or redundancy pay may be able to claim these from the National Insurance Fund, although there are statutory limits on the amounts that can be claimed.

Generally, a limited company is a separate legal entity, and directors are not personally liable for its debts. However, personal liability can arise if a director has given a personal guarantee, acted fraudulently, or engaged in wrongful trading. This occurs when a director continues to trade while knowing the company cannot avoid insolvency, without taking steps to minimise losses to creditors.

A licensed insolvency practitioner acts as the liquidator and is responsible for managing the entire process. Their duties include realising the company's assets, investigating the conduct of directors, agreeing claims from creditors, and distributing any available funds in the correct statutory order. They also have a duty to report any matters of concern to the relevant authorities, such as the Insolvency Service.

Yes, you can generally start a new business after your company has been liquidated, provided you have not been disqualified as a director. A disqualification order can restrict your ability to act as a director for a specified period. However, buying assets from the old company and starting a similar venture can be scrutinised by the liquidator to ensure creditors were not prejudiced.

You will need to provide the liquidator with comprehensive financial records, including the company's statutory books, bank statements, accounting records, and details of all assets and liabilities. You must also provide a statement of affairs, which is a formal document outlining the company's financial position. You should cooperate fully with the liquidator's requests for information to ensure a smooth process.