Professional Company LiquidatorsServing Ringwood Businesses

The cost varies based on the complexity of the company's affairs, but typically ranges from £4,000 to £8,000 plus VAT. This fee covers the liquidator's statutory work, including preparing the statement of affairs, realising assets, and distributing funds to creditors. You should always obtain a fixed fee quote in writing before proceeding.

A company can be placed into creditors' voluntary liquidation if it is insolvent, meaning it cannot pay its debts as they fall due. The directors must pass a resolution to wind up, and at least 75% of shareholders must agree. A licensed insolvency practitioner must be appointed as liquidator, and the process is formalised through a meeting of creditors.

The initial liquidation meeting typically takes place within two to four weeks of the decision to wind up. Once the liquidator is appointed, the process of realising assets and investigating affairs can take six to twelve months, depending on the complexity. Final distributions to creditors may occur after that period, and the company is dissolved at the end.

Yes, you can continue trading while you are arranging the liquidation, but you must be careful not to incur new debts that the company cannot pay. If you trade while insolvent and worsen the position of creditors, you risk personal liability for wrongful trading. It is advisable to seek professional advice immediately if you are concerned about solvency.

Alternatives include a company voluntary arrangement (CVA) to repay debts over time, administration to allow a restructure or sale as a going concern, or a formal insolvency procedure such as a scheme of arrangement. For solvent companies, a members' voluntary liquidation is an option. A licensed insolvency practitioner can explain which alternative best suits your circumstances.

Employees are made redundant when the company enters liquidation, unless they are retained by the liquidator to assist with certain tasks. They may be entitled to claim redundancy pay, unpaid wages, and holiday pay from the National Insurance Fund, but this is subject to statutory limits. The liquidator will provide employees with the necessary forms and guidance.

In a creditors' voluntary liquidation, you do not need to attend court. The process is initiated by shareholder resolutions and a virtual or physical meeting of creditors. However, if a winding-up petition is presented by a creditor, a court hearing will be required. Your insolvency practitioner will advise you on the correct procedure for your situation.

Yes, you can be a director of another company after liquidation, but there are restrictions. If the company has been placed into compulsory liquidation due to unfit conduct, you may be disqualified for a period. In a voluntary liquidation, you are not automatically disqualified, but you must not act as a director while disqualified by a court order.

The liquidator's role is to act in the best interests of creditors. They take control of the company's assets, investigate the directors' conduct and the company's affairs, and realise assets to make distributions to creditors. They also have a duty to report any misconduct to the Insolvency Service. They are licensed and regulated professionals.

You should choose a practitioner who is licensed by a recognised professional body, such as the Insolvency Practitioners Association or the Institute of Chartered Accountants. Look for someone with experience in your industry and who offers a fixed fee. You can verify their licence and check for any disciplinary history through the regulatory body.