Professional Company LiquidatorsServing Montrose Businesses

A licensed insolvency practitioner acts as a liquidator, taking control of the company's assets, realising them for the benefit of creditors, investigating the company's affairs, and ensuring that the liquidation is conducted lawfully and efficiently. They also report to creditors on the outcome.

The cost varies depending on the complexity of the company's affairs, the number of assets, and the level of creditor involvement. Typically, fees are based on time spent or as a percentage of realisations. You should obtain a clear fee quote before appointing a liquidator.

The process begins with an initial assessment of solvency. If the company is insolvent, the directors can call a meeting of shareholders to pass a resolution for voluntary liquidation. A licensed insolvency practitioner is then appointed as liquidator, and the company enters creditors' voluntary liquidation.

The duration depends on the complexity of the case. A straightforward liquidation with no trading and minimal assets might be completed in a few months. However, if there are investigations, asset realisations, or legal challenges, it can take a year or more to finalise.

Yes, alternatives include company voluntary arrangements (CVAs) to restructure debts, administration to give breathing space, or informal negotiations with creditors. A licensed insolvency practitioner can assess your situation and advise on the most suitable option for your company.

Directors must cooperate fully with the liquidator, provide all necessary books and records, and not dispose of any company assets without consent. They must also avoid any transactions that could be deemed as wrongful trading or preference of certain creditors.

In some circumstances, yes. If a director has given a personal guarantee, they may be liable. Also, if wrongful trading is proven, a court can order a director to contribute to the company's assets. Proper advice and early action can mitigate these risks.

Employees are made redundant when the company ceases to trade. They may be entitled to claim redundancy pay and other arrears from the National Insurance Fund. The liquidator will provide them with the necessary forms and information to make these claims.

A company is insolvent if it cannot pay its debts as they fall due, or if its liabilities exceed its assets. Indicators include mounting creditor pressure, bounced cheques, statutory demands, or an inability to pay wages. A professional assessment is recommended if you are concerned.

Voluntary liquidation is initiated by the directors or shareholders, usually through a members' or creditors' voluntary liquidation. Compulsory liquidation is forced by a creditor through a court order, often following a statutory demand. The process and implications differ significantly.