Professional Company LiquidatorsServing Oakham Businesses

A company liquidator is a licensed insolvency practitioner who manages the closure of a company. Their role includes realising assets, agreeing creditor claims, investigating director conduct, and distributing any available funds to creditors in the correct statutory order. They also handle legal filings and ensure the company is formally dissolved at the end of the process.

Costs vary depending on the complexity of the case, but for a simple creditors' voluntary liquidation, fees are often fixed or based on time spent. You should obtain a clear quote upfront, including any disbursements. Always confirm whether the fee covers all statutory advertising and filing costs before instructing a practitioner.

Directors can propose a creditors' voluntary liquidation if the company is insolvent. Alternatively, a creditor may petition the court to wind up a company, but that is a different route. To appoint a liquidator voluntarily, the board must pass a resolution and then convene a meeting of creditors to confirm the appointment.

The process typically starts with a director's meeting to pass a resolution for winding up. Then, a statement of affairs is prepared, and a meeting of creditors is held, usually within 14 days. Creditors vote on the choice of liquidator. Once appointed, the liquidator takes control of assets and begins the statutory duties.

The length depends on the complexity of the case. A straightforward creditors' voluntary liquidation can be concluded in about six to nine months, but cases with complex asset sales, litigation, or disputes can take several years. Your liquidator should provide an estimated timeline after reviewing your company's affairs.

Alternatives include company voluntary arrangements (CVAs), administration, or informal arrangements with creditors. A CVA allows a company to repay debts over a period while continuing to trade. Administration provides a moratorium from creditor action and can enable a rescue or a better return than immediate liquidation. Your practitioner can advise which is most suitable.

Once a company enters creditors' voluntary liquidation, the directors' powers cease, and the liquidator takes over control. Trading is not permitted after the resolution is passed, except in limited circumstances with the liquidator's consent. Before liquidation, you must be careful not to trade whilst insolvent, as that could lead to personal liability.

Employees are automatically dismissed when a company enters liquidation. They become preferential creditors for certain claims, such as unpaid wages up to a statutory cap, holiday pay, and notice pay. The liquidator will provide them with the necessary forms to claim from the National Insurance Fund for any shortfall.

Generally, no, because a company is a separate legal entity. However, personal liability can arise if you have given personal guarantees, or if you have been involved in wrongful trading, fraudulent trading, or misuse of company funds. Directors' loans that cannot be repaid may also become taxable as income. Always seek advice to understand your exposure.

Look for a practitioner who is licensed by a recognised professional body, such as the Insolvency Practitioners Association or the Institute of Chartered Accountants. Check their experience with similar cases, ask for a fixed fee quote, and ensure they are independent. You can also verify their licence status through the regulatory body's website.