Company Liquidators inSettle for Businesses

A company liquidator is a licensed insolvency practitioner who manages the closure of an insolvent company. They realise assets, agree creditor claims, investigate director conduct, and distribute any funds available. Their role is to ensure the process is carried out legally and fairly for all parties involved.

The cost of liquidation varies depending on the complexity of the case, the size of the company, and the number of creditors. Typically, fees range from a few thousand pounds to more for larger cases. A licensed practitioner will provide a fixed fee quotation before you proceed, so there are no surprises.

Creditors' voluntary liquidation is initiated by directors when the company is insolvent, and shareholders pass a resolution. Compulsory liquidation is ordered by a court, usually following a creditor's petition. The former is more common and gives directors more control over the process.

Once liquidation begins, the liquidator takes control of the company, and directors cease to have authority to trade. However, in certain circumstances, the liquidator may continue trading for a short period to complete contracts or maximise asset value. You must not trade without the liquidator's consent.

Employees are made redundant when the company enters liquidation. The liquidator handles redundancy payments, unpaid wages, and holiday pay claims, which may be recoverable from the National Insurance Fund. Employees are considered preferential creditors for certain amounts, but any unsecured balance is treated as a non-preferential claim.

The duration depends on the complexity of the case. A straightforward creditors' voluntary liquidation may be completed within six to nine months, but cases with complex asset realisation or legal issues can take longer. The liquidator provides a timeline at the outset and keeps creditors informed of progress.

Yes, alternatives include a company voluntary arrangement (CVA), administration, or informal arrangements with creditors. A CVA allows the company to repay debts over time while continuing to trade. Administration provides a moratorium from creditors and may enable a business rescue. Your practitioner will advise on the best course of action.

Any company that is insolvent, meaning it cannot pay its debts as they fall due, may be placed into liquidation. Directors must pass a resolution and file a statutory declaration of solvency if they propose a members' voluntary liquidation, but for creditors' voluntary liquidation, the company must be insolvent.

Directors must cooperate fully with the liquidator, providing all company records, financial information, and explanations. They must not hide assets or destroy documents. Failure to cooperate can lead to personal liability or disqualification. The liquidator will investigate director conduct and report any misconduct to the appropriate authorities.

For a creditors' voluntary liquidation, directors can appoint a liquidator directly by passing a resolution and convening a meeting of creditors. For compulsory liquidation, a court order is required, typically obtained by a creditor. A licensed practitioner can guide you through the correct procedure for your situation.