Professional Company Liquidators inOkehampton for Your Business

The cost varies depending on the complexity of the company's affairs, the number of assets, and the level of creditor engagement. A licensed insolvency practitioner will provide a fixed fee quote after an initial assessment. Always request a breakdown of disbursements and statutory costs before agreeing to proceed.

Yes, a company with no assets can be placed into creditors' voluntary liquidation if it is insolvent. The process is often streamlined, but the practitioner must still fulfil statutory duties. For a solvent company with no assets, a director may apply for voluntary strike-off, which is a different and cheaper procedure.

A straightforward creditors' voluntary liquidation typically takes between six and twelve months to conclude, depending on asset realisation and creditor responses. A compulsory liquidation may take longer due to court involvement. A solvent members' voluntary liquidation can often be completed more quickly, sometimes within three to six months.

Alternatives include a company voluntary arrangement, which allows you to repay debts over an agreed period, or formal restructuring through administration. For solvent companies, striking off is a cheaper option. A licensed practitioner can assess your cash flow and balance sheet to recommend the most suitable route.

A members' voluntary liquidation requires the company to be solvent, meaning it can pay all debts in full within twelve months. Directors must make a statutory declaration of solvency, supported by a statement of affairs. This declaration is a serious legal document with penalties for false statements.

Generally, directors are not personally liable for company debts, as the company is a separate legal entity. However, personal liability can arise if you have given personal guarantees, traded wrongfully, or acted negligently. A liquidator will investigate your conduct and report any issues to the relevant authorities.

You should select a practitioner who is regulated by a recognised professional body, such as the Insolvency Practitioners Association. Check their experience with your specific industry and request references. Speak with a specialist listed on AccountingFirms to ensure they are properly qualified and insured.

The liquidator takes control of all company assets, realises them for cash, and distributes the proceeds to creditors in a strict statutory order. Secured creditors are paid first, followed by preferential creditors, then unsecured creditors. Shareholders receive any remaining funds only after all claims are settled.

Yes, a creditors' voluntary liquidation is initiated by a shareholder resolution without court involvement. A members' voluntary liquidation also does not require a court order. However, a compulsory liquidation is always court-ordered, typically following a winding-up petition from an unpaid creditor.

Employees are treated as preferential creditors for certain claims, such as unpaid wages up to a statutory limit and holiday pay. The liquidator will assess these claims and may apply to the National Insurance Fund for a redundancy payment if the company cannot cover the costs.