Professional Company LiquidatorsGuidance for Newtown

Costs vary based on the complexity of your company's affairs. A straightforward liquidation may have fixed fees, whilst more involved cases could be charged on a time basis. You should always request a clear written quote before proceeding. The liquidator's fees are paid from the company's assets, subject to statutory priority rules.

Your company is eligible if it is insolvent, meaning it cannot pay its debts as they fall due. This includes situations where liabilities exceed assets. A licensed insolvency practitioner will assess your balance sheet and cash flow to confirm eligibility. They will also check for any restrictions, such as an existing administration order or a pending winding-up petition.

The process begins with a board meeting where a resolution to wind up is proposed. For a creditors' voluntary liquidation, you must convene a meeting of shareholders and then a separate meeting of creditors. A licensed insolvency practitioner is appointed to act as liquidator. They will then take control of the company's assets and affairs.

The duration depends on the complexity of the case. A simple liquidation with few assets and creditors might be concluded within six to nine months. More complex cases, involving litigation or the realisation of difficult assets, can take several years. Your liquidator will provide an estimated timeline at the outset and keep you informed of progress.

Yes, there are several alternatives. A company voluntary arrangement (CVA) allows you to repay debts over a period. Administration provides a moratorium from creditors and may facilitate a rescue. A formal restructuring or a sale of the business as a going concern might also be possible. You should discuss all options with a regulated professional before making a decision.

Directors must cooperate fully with the liquidator, providing all relevant books, records, and information. They must not dispose of any company assets without permission. They also have a duty to answer questions about the company's affairs. Failure to comply can result in personal liability or disqualification proceedings.

Yes, you can. If the company has no assets to fund a liquidation, creditors may still petition for a compulsory winding-up. Alternatively, a director may apply for a creditors' voluntary liquidation, but the liquidator's fees will need to be funded, often by the directors personally or by a third party. The liquidator will advise on the feasibility of this approach.

Employees are automatically dismissed when a company enters liquidation. They become preferential creditors for certain claims, such as unpaid wages and holiday pay. The liquidator will provide them with the necessary forms to claim from the National Insurance Fund. They may also be entitled to redundancy pay, subject to statutory limits.

Generally, no. Limited liability protects directors from personal liability for company debts. However, personal liability can arise if you have given a personal guarantee, or if you have acted wrongfully, fraudulently, or traded whilst insolvent. The liquidator has a duty to investigate your conduct and may pursue recovery if misfeasance is found.

You should select a licensed insolvency practitioner who is regulated by a recognised professional body. Look for someone with experience in your industry and a transparent fee structure. You can verify their licence and check for any disciplinary history. A good liquidator will offer a free initial consultation and provide clear, practical advice without pressure.