Professional Company LiquidatorsGuidance in Oulton

A licensed insolvency practitioner acts as the liquidator, taking control of the company's assets. They sell those assets, agree claims from creditors, investigate the company's affairs, and distribute any funds available. They also ensure that the company is struck off the register and dissolved correctly, bringing the legal existence of the business to an end.

The cost varies depending on the size and complexity of the company's affairs. For a Creditors' Voluntary Liquidation, fees are often based on a fixed fee structure or a percentage of the assets realised. The liquidator's fees are paid from company assets, and they must be approved by creditors. You should ask for a clear breakdown of costs before appointment.

A Creditors' Voluntary Liquidation is a shareholder-initiated process where directors decide to place an insolvent company into liquidation. A compulsory liquidation occurs when a creditor petitions the court to wind up the company, often after a statutory demand has been ignored. Both processes result in liquidation, but the trigger and level of court involvement differ significantly.

The process typically takes between six and twelve months to complete, but this can be longer for complex cases. The liquidator must investigate the company's affairs, deal with creditor claims, and realise assets. Once these steps are complete, the liquidator can apply to the registrar to dissolve the company, which usually occurs three months after the final meeting.

Trading whilst insolvent can lead to personal liability for directors if the company takes on new credit without a reasonable prospect of repayment. This is known as wrongful trading. You should seek immediate professional advice to assess whether a rescue plan is viable or whether you should cease trading and place the company into liquidation.

There are several alternatives to liquidation, including a Company Voluntary Arrangement (CVA), which allows a company to repay debts over a period of time, or administration, which aims to rescue the company as a going concern. A formal restructuring plan might also be an option. Each alternative has distinct advantages and disadvantages that need careful evaluation.

When a company enters liquidation, employees are automatically made redundant from the date the liquidation order is made or the resolution is passed. The liquidator will dismiss employees, and they can claim certain statutory entitlements from the National Insurance Fund, including redundancy pay, notice pay, and unpaid wages, subject to statutory limits.

Yes, you can still appoint a liquidator even if there are no assets. This is often called a 'no-asset' liquidation. The liquidator's fees may need to be funded by the directors or a third party, as there are no company funds available to pay for the process. This is a common situation for many small companies that have ceased trading.

The Insolvency Service is an executive agency that regulates insolvency practitioners and investigates the conduct of directors of companies that have entered liquidation. They will review the liquidator's report and may take action against directors for unfit conduct, including disqualification orders. The service also deals with complaints about the conduct of insolvency practitioners.

Generally, you will not be personally liable for company debts if the company is a limited liability entity and you have not acted wrongfully. However, personal liability can arise if you have given personal guarantees for loans or credit, or if you have been found guilty of wrongful trading or fraudulent trading. The liquidator can also pursue the recovery of unlawful dividends.