Company Liquidators inPerivale for Directors

A company liquidator is a licensed insolvency practitioner who manages the closure of a company. They sell assets, settle debts with creditors, and distribute any remaining funds to shareholders. They also investigate the conduct of directors and report to the relevant authorities if necessary.

The cost of liquidation varies depending on the complexity of the company's affairs, the number of assets, and the level of creditor involvement. For a straightforward creditors' voluntary liquidation, fees may start from around £4,000 plus VAT. It is advisable to obtain a fixed-fee quote before proceeding.

Yes, you can liquidate a company with no assets. In such cases, a liquidator may still charge a fee for their services, but this can sometimes be funded by the director or from the company's remaining cash. If there are no funds at all, a director may consider a strike-off instead.

Solvent liquidation, known as a members' voluntary liquidation, is used when a company can pay its debts in full within twelve months. Insolvent liquidation, or creditors' voluntary liquidation, is used when the company cannot pay its liabilities. The process and the role of the liquidator differ significantly between the two.

A creditors' voluntary liquidation typically takes between six and twelve months to complete, depending on the complexity of the company's affairs. A members' voluntary liquidation may be quicker if all assets are realised and debts are paid promptly. The liquidator will provide a timeline at the outset.

Alternatives include a company voluntary arrangement (CVA), administration, or a formal strike-off if the company is solvent and no longer required. A licensed insolvency practitioner can help you assess which option best suits your circumstances and those of your creditors.

No, you do not need to be insolvent. A solvent company can be closed via a members' voluntary liquidation, which requires a declaration of solvency from the directors. This process is often used for tax planning or when the owners wish to retire and extract capital efficiently.

Employees are made redundant when a company enters liquidation. They may be entitled to claim statutory redundancy pay, notice pay, and unpaid wages from the National Insurance Fund. The liquidator will provide the necessary forms and guidance to affected employees.

Yes, you can be a director of a new company after liquidation, but you must not use a similar name to the liquidated company within five years unless certain conditions are met. This is governed by the Company Directors Disqualification Act 1986, and professional advice is essential.

Generally, no. Limited liability protects directors from personal liability for company debts, provided they have not given personal guarantees or acted wrongfully. However, if you have traded whilst insolvent or misused funds, a liquidator may seek to recover money from you personally.