Professional Company LiquidatorsServing Newham Businesses

A company liquidator is a licensed insolvency practitioner who manages the closure of a company. They collect and sell assets, settle creditor claims, investigate the directors' conduct, and distribute any remaining funds to shareholders. They ensure the process is conducted legally and fairly.

The cost of liquidation varies depending on the complexity of the company's affairs. Typically, fees range from a few thousand pounds to more for larger or more complicated cases. A licensed practitioner will provide a fixed fee quote after reviewing your company's financial position.

A creditors' voluntary liquidation usually takes between 6 to 12 months to complete. This period allows for the realisation of assets, the investigation of affairs, and the submission of final accounts. However, the exact timeline depends on the company's specific circumstances and the complexity of its financial records.

To be eligible for a creditors' voluntary liquidation, the company must be insolvent, meaning it cannot pay its debts as they fall due. The directors must pass a resolution to wind up the company, and creditors must approve the appointment of a liquidator at a meeting.

Voluntary liquidation is initiated by the directors or shareholders, whereas compulsory liquidation is ordered by a court, usually following a creditor's petition. Voluntary liquidation gives more control to the directors, while compulsory liquidation is often the result of a statutory demand or a winding-up order.

Once liquidation begins, the liquidator takes control of the company's affairs. Trading can only continue if the liquidator decides it is necessary for the beneficial realisation of assets or to preserve the business as a going concern. Any trading must be approved by the liquidator.

The liquidator will take possession of all company assets, including property, equipment, stock, and intellectual property. These assets are then sold, and the proceeds are used to pay the costs of liquidation and to make distributions to creditors in the statutory order of priority.

Yes, there are several alternatives to liquidation, including company voluntary arrangements, administration, and informal arrangements with creditors. Each option has different implications for the company and its directors. A licensed insolvency practitioner can advise on the most suitable course of action based on your circumstances.

The liquidator has a duty to act in the best interests of the company's creditors. They must investigate the company's affairs, report on the conduct of directors, realise assets efficiently, and distribute funds fairly. They must also ensure compliance with all relevant laws and regulations.

You will need to provide the liquidator with the company's financial records, including bank statements, ledgers, invoices, and tax returns. You should also provide details of any assets and liabilities, as well as a list of creditors and any relevant contracts or agreements.