Professional Company LiquidatorsServing Petworth Businesses

A company liquidator is a licensed insolvency practitioner who manages the closure of an insolvent company. They take control of assets, sell them to repay creditors, investigate the directors' conduct, and formally dissolve the company. Their role is to ensure the process is fair and compliant with insolvency law.

The cost of liquidation varies depending on the size and complexity of the company. Typically, fees range from a few thousand pounds for a simple case to more for larger companies. A licensed liquidator will provide a fixed fee quote before you proceed, so you know exactly what to expect.

Any limited company that is insolvent, meaning it cannot pay its debts as they fall due, is eligible for liquidation. This includes companies with significant debts, those facing legal action from creditors, or those where the directors have decided to cease trading. You must be a director or shareholder to initiate the process.

A straightforward liquidation typically takes between six and twelve months to complete. However, complex cases with many assets or legal issues can take longer. The liquidator will provide an estimated timeline at the outset and keep you updated throughout the process.

Alternatives include company administration, which aims to rescue the business as a going concern, or a company voluntary arrangement (CVA), which allows you to repay debts over time. If the company is viable but has cash flow problems, a CVA might be suitable. Your liquidator can advise on which option fits your situation.

Once liquidation begins, the liquidator takes control of the company and trading typically stops. However, in some cases, the liquidator may allow limited trading to sell off stock or complete existing orders. You must not continue trading without the liquidator's approval, as this could lead to personal liability.

Employees are made redundant when the company enters liquidation. They may be entitled to claim redundancy pay and other statutory payments from the government's National Insurance Fund. The liquidator will provide the necessary documentation to help employees make these claims.

As a director, you are generally not personally liable for company debts if you have acted properly and not given personal guarantees. However, if you have been involved in wrongful trading or fraudulent activity, you could be held personally responsible. A liquidator will investigate your conduct as part of the process.

Look for a licensed insolvency practitioner with experience in your industry and a good reputation. You can check their credentials with a professional body such as the Insolvency Practitioners Association. It is also wise to get quotes from a few practitioners and ask about their approach before deciding.

Directors must cooperate fully with the liquidator by providing all company records, financial information, and explanations of business affairs. They may need to complete a questionnaire and attend meetings. Directors must also avoid taking any action that could be seen as hiding assets or prejudicing creditors.