Professional Company LiquidatorsServing Perranporth

A company liquidator manages the closure of a business, realising its assets, settling creditor claims, and distributing any remaining funds to shareholders. They also investigate the conduct of directors and ensure that all legal requirements are fulfilled, providing a structured and orderly end to the company's existence.

The cost of liquidation varies depending on the complexity of the case, the size of the company, and the number of creditors. Typically, fees are based on the work involved and the value of assets realised. A licensed insolvency practitioner will provide a clear fee structure before you commit, so you understand all costs upfront.

Creditors' voluntary liquidation is initiated by the directors and shareholders when the company is insolvent, and it requires a shareholder resolution. Compulsory liquidation is ordered by a court, usually following a creditor's petition. The process differs in terms of control, timing, and the role of the official receiver.

Yes, it is possible to liquidate a company with no assets, but you may need to consider the costs involved. If there are no assets to cover the liquidator's fees, creditors may be asked to fund the process, or you might consider a different route, such as a strike-off, if the company is not trading and has no debts.

The duration of liquidation depends on the complexity of the case. A simple creditors' voluntary liquidation might complete within six to twelve months, while more complex cases with disputes or asset realisation can take longer. Your liquidator will provide an estimated timeline based on your specific circumstances.

To start a creditors' voluntary liquidation, the directors must call a shareholder meeting to pass a resolution for voluntary winding up. Within 14 days, a meeting of creditors must be held to confirm the appointment of the liquidator. The directors must also prepare a statement of affairs showing the company's financial position.

In most cases, directors are not personally liable for company debts, as limited liability protects them. However, personal liability can arise if a director has given a personal guarantee, acted fraudulently, or engaged in wrongful trading. A licensed insolvency practitioner can advise on the specific risks in your situation.

Alternatives to liquidation include a company voluntary arrangement (CVA), administration, or a simple strike-off if the company is solvent and not trading. Each option has different implications for creditors, employees, and directors. It is essential to seek professional advice to determine the most suitable course of action for your company.

When a company goes into liquidation, employees are made redundant, and they may be entitled to claim certain payments from the National Insurance Fund, such as unpaid wages, holiday pay, and redundancy pay. The liquidator will provide guidance to employees on how to make these claims and what they are entitled to receive.

In compulsory liquidation, the official receiver acts as the liquidator until a private insolvency practitioner is appointed. The official receiver investigates the company's affairs, protects assets, and may call meetings of creditors. They also have powers to examine directors and others about the company's conduct and finances.