Professional Company Liquidators in StamfordYour Trusted Local Liquidation Specialists

A licensed insolvency practitioner acts as liquidator, realising the company's assets, agreeing claims with creditors, investigating the directors' conduct, and distributing any remaining funds in the statutory order. They also ensure the company is formally dissolved at the end of the process.

Liquidation costs vary depending on the complexity of the case, the size of the company, and the number of creditors. Typically, fees are paid from the company's assets, but if assets are insufficient, directors may need to fund the process. Always obtain a fixed-fee quote before appointing a liquidator.

Creditors' voluntary liquidation (CVL) is initiated by the directors when the company is insolvent, and shareholders pass a resolution to wind up. Compulsory liquidation is a court order obtained by a creditor, usually through a winding-up petition. A CVL gives directors more control over the choice of liquidator.

A simple creditors' voluntary liquidation may be completed in six to nine months, but complex cases with substantial assets or litigation can take several years. The liquidator must finalise investigations, sell assets, and distribute funds before the company can be dissolved.

Once a company enters liquidation, the liquidator takes control and the directors' powers cease. Trading is only permitted if the liquidator decides it is necessary to achieve a better outcome for creditors, for example, to sell the business as a going concern. Otherwise, the company must stop trading immediately.

Alternatives include administration, which aims to rescue the company as a going concern; a company voluntary arrangement (CVA), which allows the company to pay debts over time; or informal arrangements with creditors. Each option has different implications for directors and creditors, so professional advice is essential.

Generally, directors are not personally liable for company debts, but exceptions exist if you have given personal guarantees, have traded wrongfully, or have misused company funds. A liquidator will investigate your conduct and may seek recovery if you have breached your duties.

Directors must cooperate fully with the liquidator, providing all company records, financial information, and explanations of transactions. They must also attend meetings if required. Failure to cooperate can lead to personal liability, disqualification, or even criminal prosecution.

Choose a licensed insolvency practitioner who is authorised by a recognised professional body, such as the Insolvency Practitioners Association. Look for someone with local experience, transparent fee structures, and a clear approach to communication. You can connect with a specialist listed on AccountingFirms to discuss your case.

Employees are made redundant when the company enters liquidation, unless the liquidator continues trading temporarily. They may claim statutory redundancy pay, unpaid wages, holiday pay, and pension contributions from the National Insurance Fund, which is a government scheme. The liquidator will provide the necessary forms.