Professional Company Liquidators inOkehampton Dev for Directors

The cost varies depending on the complexity of your company's affairs, the number of creditors, and the assets involved. Creditors' voluntary liquidation is often funded from company assets, while a compulsory liquidation may involve court fees. A licensed insolvency practitioner will provide a clear fee structure before you commit.

Eligibility depends on whether your company is insolvent, meaning it cannot pay its debts as they fall due. A licensed professional will assess your balance sheet and cash flow position to determine if liquidation is appropriate, or if an alternative such as administration or a company voluntary arrangement might be more suitable.

The process typically involves a board meeting to pass a resolution, followed by a meeting of shareholders to approve the liquidation. A licensed insolvency practitioner is then appointed as liquidator. They will take control of assets, notify creditors, and distribute any proceeds in accordance with statutory priorities.

The duration depends on the complexity of the case. A straightforward creditors' voluntary liquidation may be concluded within six to twelve months, but cases with complex asset realisations or legal disputes can take longer. The liquidator will provide an estimated timeline at the outset.

Once a company enters liquidation, the liquidator takes control and trading ceases, except for the purpose of a beneficial winding-up. Directors lose their powers to manage the business. If you wish to continue trading, you might consider an administration process or a pre-pack sale instead.

Alternatives include a company voluntary arrangement (CVA) to repay debts over time, administration to protect the business from creditors while restructuring, or a formal restructuring plan. Each option has different implications for directors, creditors, and employees. A licensed professional can explain which might be viable for your situation.

Employees are made redundant when the company ceases to trade. They may be entitled to claim redundancy pay, unpaid wages, holiday pay, and other statutory payments from the National Insurance Fund. The liquidator will provide the necessary forms and guidance to help employees make claims.

Directors must cooperate fully with the liquidator, provide all company records and financial information, and not conceal assets or dispose of them improperly. They must also avoid wrongful trading by not continuing to trade when they know the company cannot avoid insolvency.

In most cases, directors are not personally liable for company debts. However, personal liability can arise if you have given personal guarantees, misused funds, or engaged in fraudulent or wrongful trading. The liquidator may investigate your conduct and take action if necessary.

You should choose a licensed insolvency practitioner who is authorised by a recognised professional body, such as the Insolvency Practitioners Association. Look for someone with experience in your industry, transparent fees, and a clear communication style. AccountingFirms can help you connect with a specialist listed on our platform.