Professional Company LiquidatorsServing Sandwich Kent

Liquidation costs vary depending on company size, asset complexity, and creditor numbers. Most licensed practitioners charge a fixed fee or a percentage of realised assets. You should request a detailed quotation before appointment, ensuring all disbursements and statutory advertising costs are clearly itemised so there are no unexpected charges later.

Any insolvent company whose directors believe it cannot pay its debts as they fall due can enter creditor voluntary liquidation. The process requires a formal board meeting, a declaration of solvency is not applicable here, and shareholder approval through a special resolution. A licensed insolvency practitioner must be appointed to act as liquidator.

Compulsory liquidation begins with a winding-up petition presented to court, often by a creditor. The court hearing typically occurs eight to twelve weeks after presentation. Once the winding-up order is granted, the official receiver becomes liquidator initially. The entire process, including asset distribution and final dissolution, usually takes twelve to eighteen months depending on complexity.

Yes, directors can petition the court for their company's winding up, but this is rare because it involves court fees and legal costs. Most directors prefer creditor voluntary liquidation as it is faster, less expensive, and gives them more control over choosing the liquidator. Professional advice helps determine which route suits your specific situation.

Before liquidation, directors should explore a company voluntary arrangement to repay debts over time, formal restructuring, or selling the business as a going concern. Sometimes informal arrangements with creditors work if the cash flow problem is temporary. An insolvency practitioner can assess which option realistically protects jobs and maximises creditor returns.

Employees are automatically dismissed once a liquidator is appointed, whether through creditor voluntary or compulsory liquidation. They become preferential creditors for unpaid wages up to statutory limits, holiday pay, and pension contributions. The liquidator provides claims forms so employees can seek redundancy payments from the National Insurance Fund, though this process takes several weeks.

Yes, any money owed to the company by a director, whether from drawings, salary advances, or personal expenses paid by the business, becomes an asset of the liquidation. The liquidator has a duty to recover these funds for creditors. Directors must repay these amounts or face potential legal proceedings, including possible disqualification proceedings.

Directors must supply all company records including statutory books, financial statements, bank statements, debtors and creditors ledgers, asset registers, and details of any disposals made in the previous two years. The liquidator also requires a statement of affairs showing assets, liabilities, and creditor details. Full cooperation is mandatory under insolvency legislation.

Once liquidation commences, the liquidator has discretion to disclaim onerous contracts, including property leases that are burdensome. Suppliers and customers may terminate agreements if there are insolvency clauses. The liquidator can also assign valuable contracts to third parties. Directors should not continue trading after deciding to liquidate, as this could constitute wrongful trading.

If a liquidator believes directors continued trading while knowing the company could not avoid insolvency, they may apply to court for a contribution order. Directors found guilty can be personally liable for company debts incurred during that period. They may also face disqualification as directors for up to fifteen years. Taking prompt professional advice is the best protection.