Company Liquidators in RomfordGuiding Your Business Closure

The cost of a Creditors' Voluntary Liquidation (CVL) is not fixed and can vary based on the complexity of the company's affairs. Fees are usually based on the work involved and the value of assets. A licensed insolvency practitioner will provide a clear fee structure before you commit, ensuring you understand all costs upfront.

Any director of a company that is insolvent is eligible to propose a Creditors' Voluntary Liquidation. The company must be unable to pay its debts as they fall due. The directors must pass a resolution and hold a meeting of shareholders to formally approve the appointment of the liquidator.

The process begins with the director consulting a licensed insolvency practitioner. If liquidation is agreed upon, the practitioner will help prepare a statement of affairs, which details the company's assets and liabilities. A meeting of shareholders is then held to pass the resolution for winding up.

The timeline can vary. A straightforward CVL might be concluded within six to nine months. However, complex cases involving asset sales or legal disputes can take longer. The liquidator will provide a realistic timeline after their initial review of the company's financial records and circumstances.

Yes, alternatives include an Administration, which aims to rescue the business as a going concern, or a Company Voluntary Arrangement (CVA), which is a formal agreement to pay creditors over a period of time. A licensed professional can help you decide which option is best for your specific situation.

If the company is insolvent and cannot continue trading, employees will be made redundant. The liquidator will handle the redundancy process. Employees may be able to claim certain statutory payments, such as redundancy pay and unpaid wages, from the National Insurance Fund.

The liquidator's role is to realise the company's assets for the benefit of creditors. Personal assets are generally protected unless they were used as personal guarantees for business loans. You should seek professional advice regarding any personal guarantees you have signed.

Once a liquidator is appointed, the director's powers cease. You have a duty to cooperate fully with the liquidator. This includes providing all company records, accounts, and information about the company's affairs. Failure to cooperate can lead to personal liability or disqualification.

If you have acted honestly and fulfilled your duties, you will generally not be personally liable for the company's debts. However, if there is evidence of wrongful trading, fraudulent activity, or misfeasance, you could face personal liability, disqualification from being a director, or other legal action.

It is crucial to choose a licensed insolvency practitioner with relevant experience. You should speak with a few different professionals to compare their approach and fees. Ensure they are regulated by a recognised professional body and that you feel comfortable communicating with them.