Professional Company LiquidatorsServing Shildon Businesses

A company liquidator is a licensed insolvency practitioner who manages the closure of a company. They sell assets, settle debts with creditors, and distribute any remaining funds to shareholders. They also investigate the conduct of directors and ensure that all legal requirements are met during the process.

The cost of liquidation varies depending on the complexity of the company's affairs, the number of creditors, and the value of assets. Typically, fees range from a few thousand pounds for a simple case to more for complex situations. Always request a detailed quote before engaging a liquidator.

Yes, you can liquidate a company with no assets. This is often called a 'creditors' voluntary liquidation' with minimal funds. The liquidator's fees are usually paid from the company's remaining cash or by the directors personally. Some liquidators offer a basic service for such cases.

Compulsory liquidation is ordered by a court, often after a creditor petitions for the company to be wound up. Voluntary liquidation is initiated by the directors or shareholders. Creditors' voluntary liquidation is used when the company is insolvent, while members' voluntary liquidation is for solvent companies.

The length of the process depends on the complexity of the case. A simple creditors' voluntary liquidation may be completed in six to twelve months. However, cases with complex asset realisation or legal disputes can take several years. The liquidator must file final accounts and report to Companies House.

Alternatives include a company voluntary arrangement (CVA), administration, or informal arrangements with creditors. A CVA allows the company to continue trading while paying debts over time. Administration provides a moratorium from creditors while a rescue plan is attempted. Always seek professional advice to explore all options.

Employees are made redundant when a company goes into liquidation. They may be entitled to claim redundancy pay, unpaid wages, and holiday pay from the National Insurance Fund. The liquidator will provide them with the necessary forms and guidance on how to make claims.

If you are a director of a company that goes into liquidation, you are generally prohibited from using the same or a similar name for a new company for five years. This is to prevent 'phoenix trading'. There are exceptions, but you must seek permission from the court or follow specific rules.

Wrongful trading occurs when a director continues to trade while knowing that the company has no reasonable prospect of avoiding insolvency. If found guilty, a director may be personally liable for the company's debts. The liquidator can apply to the court for a contribution from the director.

In a creditors' voluntary liquidation, you do not need to attend court. The process is initiated by a shareholder resolution and a meeting of creditors. However, in compulsory liquidation, a court hearing is required, and you may need to attend if you wish to contest the petition.