Company Liquidators in South Walesfor Professional Guidance and Support

A company liquidator is a licensed insolvency practitioner who takes control of a company that is being wound up. They realise assets, settle debts in the correct legal order, investigate director conduct, and ensure the company is formally dissolved. Their role is to maximise returns for creditors while ensuring compliance with insolvency law.

Costs vary depending on the complexity of the case, the size of the company, and the number of assets and creditors. A Creditors' Voluntary Liquidation typically involves a fixed fee plus a percentage of asset realisations. Always request a clear written quote from a licensed professional before proceeding.

Directors can appoint a liquidator by passing a shareholder resolution and filing the appropriate forms, provided the company is insolvent. Creditors can also petition the court to wind up a company. Eligibility depends on the company's financial position and the type of liquidation required.

The process typically involves a meeting of shareholders to pass a winding-up resolution, followed by a meeting of creditors to confirm the liquidator's appointment. The liquidator then takes control, notifies creditors, realises assets, and distributes proceeds. Finally, the company is dissolved and removed from the register.

The duration depends on the case complexity. A straightforward Creditors' Voluntary Liquidation may be completed in six to twelve months, but cases with complex asset sales or legal disputes can take several years. The liquidator must also wait for the official dissolution period, which is at least three months after the final meeting.

No, once a liquidation order is made or a resolution is passed, the directors' powers cease. The liquidator takes over management and may continue trading temporarily if it helps to realise assets or preserve value, but only with the necessary authority and for the benefit of creditors.

Alternatives include a Company Voluntary Arrangement (CVA), which allows the company to repay debts over time, or administration, which may rescue the business as a going concern. Informal arrangements with creditors or a formal restructuring plan might also be possible, depending on the circumstances.

Employees are made redundant once liquidation begins. They become preferential creditors for certain arrears of wages and holiday pay, but amounts above statutory limits are unsecured. The liquidator will provide the necessary documentation for employees to claim redundancy payments from the National Insurance Fund.

Directors can be personally liable if they have given personal guarantees, or if they have acted wrongfully, such as trading while insolvent with no reasonable prospect of recovery. The liquidator may pursue directors for repayment of funds taken improperly or for breach of fiduciary duty.

You should choose a practitioner who is licensed by a recognised professional body, such as the Insolvency Practitioners Association or the ICAEW. Look for someone with experience in your industry, transparent fee structures, and a track record of handling cases similar to yours. Always check their credentials and references.