Professional Company LiquidatorsServing Rainworth Businesses

A licensed insolvency practitioner acts as liquidator, taking control of the company's assets, realising them for creditors, investigating the directors' conduct, and ensuring the company is struck off the register. They also handle creditor communications and distribute any available funds according to legal priority.

Costs vary based on the size and complexity of the company, but typical fees range from £3,000 to £7,000 plus VAT. The liquidator's fee is paid from company assets, not directly from your pocket. Always obtain a written quote before engaging a professional.

A company is eligible for creditor voluntary liquidation if it is insolvent, meaning it cannot pay debts as they fall due. The directors must pass a resolution to wind up, and shareholders must approve it. A licensed insolvency practitioner must be appointed to act as liquidator.

The initial meeting and resolution can be completed within a few weeks. However, the full liquidation process, including asset realisation and final distribution to creditors, typically takes between 6 and 12 months. Complex cases with legal disputes or substantial assets may take longer.

You can continue trading while you assess options, but you must not incur new credit that you cannot repay. If you trade while insolvent and worsen the position of creditors, you risk personal liability for wrongful trading. Seek professional advice before making any major decisions.

Alternatives include company voluntary arrangement, administration, or informal restructuring. A CVA allows you to repay debts over time, while administration provides a moratorium from creditors. Your specific circumstances, such as the viability of the business model, will determine the most suitable option.

Employees are made redundant when liquidation is confirmed. They may be entitled to redundancy pay, unpaid wages, and holiday pay, which are claimed from the National Insurance Fund. The liquidator provides the necessary forms and guidance to help employees claim their statutory entitlements.

Generally, no, because limited liability protects your personal assets. However, you may be personally liable if you have given personal guarantees, or if you have acted fraudulently or wrongfully. The liquidator will investigate your conduct and can pursue claims against you if misconduct is found.

Directors can propose a liquidator by convening a creditors' meeting. However, creditors have the right to vote on the appointment and may choose a different practitioner if they prefer. In practice, the directors' choice is often accepted, but it is not guaranteed.

You will need to provide full financial records, including accounts, bank statements, debtors and creditors lists, asset registers, and details of any recent transactions. The liquidator also requires information about company property, such as leases, contracts, and intellectual property. Complete disclosure is essential.