Expert Company LiquidatorsServing Nelson Businesses

A company liquidator is a licensed insolvency practitioner who manages the closure of a company. They collect and sell assets, agree claims from creditors, investigate the company's affairs, and distribute any available funds. They also ensure that statutory duties are fulfilled and that the company is formally dissolved at the end of the process.

The cost of liquidation varies depending on the complexity of the case, the size of the company, and the number of creditors. Typically, fees are taken from the company's assets, but if there are insufficient assets, creditors may fund the process. It is best to speak with a licensed professional who can provide a clear fee structure before you proceed.

Creditors' voluntary liquidation (CVL) is initiated by the directors and shareholders when the company is insolvent, and it requires a shareholder resolution. Compulsory liquidation is forced by a creditor through a court order, often after a winding-up petition. A licensed insolvency practitioner can advise which route is appropriate for your situation.

Once a liquidator is appointed, they take control of the company, and directors no longer have authority to trade. However, in some cases, the liquidator may continue trading for a short period to sell assets or complete contracts. Any trading after the appointment must be done under the liquidator's supervision.

Alternatives include company voluntary arrangements (CVAs), administration, or negotiating informal payment plans with creditors. In some cases, a formal restructuring may allow the business to continue trading. A licensed insolvency practitioner can assess your financial position and recommend the most suitable option, which may not always be liquidation.

The length of time depends on the complexity of the case, but a straightforward creditors' voluntary liquidation typically takes around six to twelve months to complete. This includes realising assets, agreeing creditor claims, and finalising the dissolution. More complex cases with legal disputes or asset recovery may take longer.

Directors must cooperate fully with the liquidator, providing all company records, accounts, and information as requested. They must not hide assets or destroy documents. Directors also have a duty to avoid wrongful trading and to consider the interests of creditors from the point of insolvency. Failure to comply can lead to personal liability.

Generally, directors are not personally liable for company debts, but there are exceptions. If you have given personal guarantees, you may be responsible for those debts. Additionally, if you have engaged in wrongful trading or fraudulent activity, you could be held personally liable. Seeking professional advice early can help protect your position.

A director's loan account records money owed by the director to the company or vice versa. If you owe the company money, that debt is an asset of the company, and the liquidator may pursue recovery. If the company owes you money, you become a creditor, but you will rank behind secured creditors and may not receive payment in full.

Yes, you can start a new company after a creditors' voluntary liquidation, unless you are disqualified from being a director. However, there are restrictions on using a similar company name that suggests it is the same as the liquidated company. You should seek legal advice to ensure you comply with the rules.