Professional Company Liquidators inPeterlee for Your Business

A company liquidator is a licensed insolvency practitioner who manages the winding down of a business. They collect and 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, but this can increase if there are legal complications or a need for extensive investigations.

A typical creditors' voluntary liquidation takes between six and twelve months to complete. This includes the initial meeting, asset realisation, agreeing claims with creditors, and making final distributions. If the company has complex assets or disputes, the process can take longer, but a liquidator will provide a realistic timescale at the outset.

Yes, it is possible to liquidate an insolvent company with no assets, but you will need to consider how the liquidator's fees will be paid. In some cases, a director or a third party may fund the process. Alternatively, if the company has no assets and no significant liabilities, a strike-off may be a cheaper option, but this is not always suitable.

Creditors' voluntary liquidation (CVL) is initiated by the directors and shareholders when the company is insolvent. Compulsory liquidation is a court order, usually made after a creditor presents a winding-up petition. A CVL gives directors more control over the choice of liquidator, whereas compulsory liquidation is imposed by the court.

Yes, alternatives include a company voluntary arrangement (CVA), which allows the company to repay debts over a period, or administration, which gives a breathing space while a restructure is attempted. A formal insolvency practitioner can assess whether any of these options are viable and explain the pros and cons in your specific situation.

When a company enters liquidation, all employees are automatically dismissed. The liquidator will provide the necessary documentation for employees to claim redundancy pay and other entitlements from the government's redundancy payments office. The liquidator also has a duty to ensure that employee claims are dealt with correctly and in accordance with employment law.

In most cases, limited liability protects directors from being personally responsible for company debts. However, if you have given a personal guarantee, or if you have acted wrongfully, such as trading while insolvent with no reasonable prospect of recovery, you could be pursued for repayment. A liquidator will investigate your conduct and may take action if there is evidence of misfeasance.

You will need to provide the company's full accounting records, bank statements, tax returns, details of any assets and liabilities, and a list of creditors and debtors. You should also provide information about any transactions made in the previous two years, particularly those involving connected parties, as the liquidator has a duty to review these.

Yes, you can start a new company after a creditors' voluntary liquidation, provided you have not been disqualified as a director. However, you should be aware that the liquidator may report your conduct to the Insolvency Service, and if you have acted improperly, you could face restrictions on acting as a director for a period of time.