Professional Company LiquidatorsServing Oxon Businesses

A company liquidator is a licensed insolvency practitioner who takes control of a company that is being wound up. Their role involves realising assets, settling debts with creditors in the correct order, investigating the directors' conduct, and ensuring the company is formally dissolved at the end of the process.

The cost of a creditors' voluntary liquidation is typically funded from the company's assets. If there are insufficient assets, directors may need to consider a director's loan or other funding arrangements. Fees vary depending on the complexity of the case, so it is advisable to obtain a fixed fee quote from a licensed professional.

Any limited company that is insolvent, meaning it cannot pay its debts when they fall due, is eligible for a creditors' voluntary liquidation. This includes companies with significant debts, those facing legal action, or those where the directors have concluded that the business has no viable future. A licensed practitioner will confirm eligibility.

The formal liquidation process usually takes between six and twelve months, although complex cases may take longer. The liquidator must hold a creditors' meeting, realise assets, distribute funds to creditors, and then apply to dissolve the company. The timeline depends on the cooperation of directors and the complexity of the company's affairs.

Once a decision has been made to liquidate, directors should cease trading as soon as possible to avoid personal liability for wrongful trading. However, the liquidator may allow limited trading to complete contracts that will benefit creditors. It is essential to seek advice before taking any further steps.

Alternatives include a company voluntary arrangement (CVA), administration, or formal restructuring. A CVA allows a company to repay debts over a period while continuing to trade. Administration provides a moratorium from creditors while a rescue plan is attempted. A licensed professional can explain which option best suits your circumstances.

In most cases, 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 a personal guarantee, or if you have acted wrongfully or fraudulently. A licensed practitioner will assess your exposure and advise accordingly.

Employees are made redundant when the company enters liquidation. They become preferential creditors for unpaid wages, holiday pay, and pension contributions, up to statutory limits. The liquidator will assist employees in claiming any outstanding amounts from the National Insurance Fund, which provides a safety net for redundancy payments.

For a creditors' voluntary liquidation, a meeting of creditors is required, although it can be held virtually or by proxy. Directors are expected to attend or be represented. The meeting allows creditors to vote on the choice of liquidator. A licensed professional will prepare all the necessary documentation and guide you through the process.

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 and a transparent fee structure. You can connect with a specialist listed on AccountingFirms to ensure you receive professional and regulated advice.