Professional Company LiquidatorsGuidance in Rushden

The cost varies depending on the complexity of the company's affairs, the number of creditors, and the work required to realise assets. A licensed insolvency practitioner will provide a fee estimate after an initial review. Creditors' voluntary liquidation fees are often paid from the company's assets, but you should always confirm the basis of the fees in writing.

Your company is eligible if it is insolvent, meaning it cannot pay its debts as they fall due, or its liabilities exceed its assets. A director can propose a creditors' voluntary liquidation. If the company is solvent, a members' voluntary liquidation is possible. A professional will assess the balance sheet and cash flow to confirm the correct route.

The process begins with a board meeting where a resolution is passed to wind up the company. For an insolvent company, a meeting of creditors is then held to confirm the appointment of the liquidator. The liquidator takes control of the assets, investigates the company's affairs, and distributes funds to creditors in the statutory order.

The duration depends on the company's complexity. A simple case with few assets and creditors might be concluded within six to nine months. Cases with complex asset realisation, legal disputes, or incomplete records can take several years. The liquidator will provide a timeline after the initial investigation and will keep creditors informed of progress.

Alternatives include a company voluntary arrangement, which allows the company to repay debts over a period, or administration, which may rescue the business as a going concern. Informal arrangements with creditors are also possible. Each option has different legal effects and outcomes for directors, so professional advice is essential before choosing a route.

Once a liquidator is appointed, their control over the company's affairs is absolute. Directors lose their powers to manage the business, although they must cooperate with the liquidator. Trading may continue for a short period if the liquidator believes it is necessary to achieve a better result for creditors, but this is at their discretion.

Directors must act in the best interests of creditors once insolvency is inevitable. This includes avoiding wrongful trading, not making preferential payments to certain creditors, and not disposing of company assets at an undervalue. Directors must also provide full and accurate information to the liquidator and cooperate with their investigations.

Generally, no. Limited liability protects directors from personal responsibility for company debts. However, personal liability can arise if you have given personal guarantees, if you have traded wrongfully, or if you have misused company funds. The liquidator will investigate the conduct of directors and may seek contributions if misconduct is found.

Employees are automatically dismissed when a company goes into liquidation. They become preferential creditors for unpaid wages, holiday pay, and certain other entitlements. The liquidator will provide them with the necessary forms to claim payments from the National Insurance Fund, which covers statutory redundancy payments and some arrears of pay.

You will need to provide the company's statutory books, financial records, bank statements, and details of all assets and liabilities. You must also provide a statement of affairs, which lists what the company owns and owes. The liquidator will require your full cooperation and access to all relevant documentation to conduct their investigation.