Professional Company LiquidatorsServing Stewarton Directly

A company liquidator is a licensed insolvency practitioner who winds up a company's affairs. They collect and sell assets, settle creditor claims, and distribute any remaining funds. They also investigate director conduct and report to creditors. Their role is to ensure the process is fair, transparent, and legally compliant.

The cost varies depending on the company's size and complexity. Typically, fees are based on time spent or a percentage of asset realisations. Some practitioners offer a fixed fee for straightforward cases. Always request a clear written quote before proceeding. You may also reclaim VAT on fees if your company is VAT-registered.

Voluntary liquidation is initiated by the company's directors or shareholders, whereas compulsory liquidation is ordered by a court, often following a creditor's petition. Voluntary liquidation is more common and allows directors to appoint a liquidator of their choice. Compulsory liquidation removes control from directors and is generally more costly and time-consuming.

Once a liquidator is appointed, they take control of the company. Directors cease to have authority to trade or manage assets. The liquidator may continue trading for a short period to complete contracts or sell stock, but only with the aim of maximising returns for creditors. You cannot trade in the company's name without the liquidator's consent.

Common signs include persistent cash flow problems, inability to pay debts when due, creditor legal action, and declining sales. If your company's liabilities exceed assets, you may be insolvent. Seeking advice early can help you explore alternatives like a company voluntary arrangement or administration, which might save the business.

A typical creditors' voluntary liquidation takes between 6 and 12 months, depending on the complexity of the case. Simple cases may be concluded sooner, while those with numerous assets or disputes can take longer. The liquidator must file final accounts with the registrar and notify creditors of the conclusion.

Generally, directors are not personally liable for company debts, as the company is a separate legal entity. However, personal liability can arise if you have given personal guarantees, or if you have acted wrongfully, such as trading while insolvent without reasonable prospect of recovery. A liquidator can pursue directors for such conduct.

Yes, you can liquidate a company with no assets. This is often done through a creditors' voluntary liquidation, where the liquidator's fees are paid by the directors or from funds available. If there are no assets and no funds, an application to strike off the company may be more cost-effective, but this does not provide the same legal closure as liquidation.

Employees are entitled to claim certain arrears of wages, holiday pay, and redundancy pay from the National Insurance Fund. The liquidator will assist employees in making claims. Employees are preferential creditors for some amounts, but unsecured for the rest. The liquidator will also ensure that employee contracts are terminated properly.

Yes, alternatives include a company voluntary arrangement, administration, or informal negotiation with creditors. A CVA allows the company to continue trading while paying debts over time. Administration provides a moratorium from creditors and may allow for business rescue. A licensed insolvency practitioner can assess which option is best for your situation.