Professional Company LiquidatorsServing Sherburn Hill

The cost varies based on the complexity of the company's affairs, the number of creditors, and the work required to realise assets. Fees are usually based on time spent or a fixed fee agreed in advance. Always request a clear breakdown of costs before proceeding.

Directors, shareholders, or creditors can apply to wind up a company. For a voluntary liquidation, the directors must make a statutory declaration of solvency if the company can pay debts in full within 12 months. Otherwise, a creditors' voluntary liquidation is required.

A straightforward creditors' voluntary liquidation may be completed within six to nine months, but complex cases can take longer. The liquidator must investigate affairs, sell assets, distribute funds, and prepare final accounts. Timelines depend on cooperation from directors and the nature of the company's records.

Once a liquidation order is made or a resolution is passed, trading must cease immediately, except for actions that preserve value or complete essential contracts with the liquidator's consent. Continuing to trade after this point may lead to personal liability for directors.

Alternatives include a company voluntary arrangement (CVA), administration, or informal restructuring with creditors. A CVA allows the company to repay debts over time while continuing to trade. Administration provides a moratorium from creditors while a plan is developed. Always seek professional advice to assess which option is most suitable.

Generally, no. Limited liability protects directors from personal liability for company debts, provided there has been no wrongful trading, fraudulent activity, or personal guarantees. If you have given personal guarantees, you may be pursued by creditors for those specific debts.

The directors call a meeting of shareholders to pass a resolution for winding up, and then convene a meeting of creditors. At the creditors' meeting, they nominate a liquidator. The appointed liquidator must be a licensed insolvency practitioner and will take control of the company's affairs.

You must provide the company's books and records, including financial statements, bank statements, debtor and creditor lists, and details of any assets. The liquidator will also require a statement of affairs, which lists what the company owns and owes. Full cooperation is essential for a smooth process.

If you are an employee as well as a director, your employment will terminate when liquidation begins. You may be able to claim redundancy pay and other entitlements from the National Insurance Fund, but this is not guaranteed. It is important to seek advice on your employment rights separately from the liquidation process.

The liquidator takes control of all company assets, sells them, and distributes the proceeds to creditors in a statutory order. Secured creditors are paid first, then preferential creditors, and finally unsecured creditors. Any remaining funds are distributed to shareholders if there is a surplus.