Professional Company LiquidatorsServing Selkirk Businesses

A company liquidator is a licensed insolvency practitioner who manages the closure of a company. They sell assets, settle creditor claims, and distribute any remaining funds to shareholders. They also investigate the conduct of directors and ensure compliance with legal requirements.

The cost of liquidation varies depending on the complexity of the case and the size of the company. Typically, fees range from a few thousand pounds for a simple creditor’s voluntary liquidation to higher amounts for complex cases. Always request a fixed fee quote before proceeding.

Voluntary liquidation is initiated by the company’s shareholders or directors, often through a creditor’s voluntary liquidation when the company is insolvent. Compulsory liquidation is forced by a court order, usually after a creditor petitions for winding up. Each route has different procedures and implications.

Yes, a company can be liquidated even if it is still trading, provided the directors have made a formal decision to cease operations. In such cases, a members’ voluntary liquidation is used if the company is solvent, whereas a creditor’s voluntary liquidation is used if it is insolvent.

The duration depends on the complexity of the company’s affairs. A straightforward creditor’s voluntary liquidation may complete in six to twelve months, while cases with substantial assets or disputes can take longer. The liquidator provides a timeline after reviewing the company’s records.

Alternatives include a company voluntary arrangement (CVA) to restructure debts, administration to protect the business while a rescue is attempted, or informal negotiations with creditors. A licensed practitioner can explain which option is most suitable based on your company’s financial position and objectives.

No, you can liquidate a solvent company using a members’ voluntary liquidation, provided the directors make a statutory declaration of solvency. This process is often used when owners wish to retire or close a business that has no outstanding debts.

Employees are made redundant when a company enters liquidation, and they may be entitled to claim statutory redundancy pay, notice pay, and unpaid wages from the National Insurance Fund. The liquidator provides them with the necessary claim forms and guidance.

Generally, directors are not personally liable for company debts, but liability can arise if they have given personal guarantees, traded wrongfully, or acted fraudulently. The liquidator investigates such matters and may pursue recovery if misconduct is found.

Look for a licensed insolvency practitioner who is a member of a recognised professional body, such as the ICAEW or ACCA. Check their experience with similar companies and request a clear fee structure. You can connect with vetted specialists through AccountingFirms.