Professional Company LiquidatorsServing Stirlingshire Businesses

The cost of liquidation varies based on the complexity of the company's affairs, the number of creditors, and the value of assets. Creditors' voluntary liquidation is often funded from the company's assets, while a compulsory liquidation may involve court fees. A licensed insolvency practitioner will provide a fixed fee quote after an initial assessment.

A members' voluntary liquidation is available to companies that are solvent, meaning they can pay all debts in full within a specified period. The directors must make a statutory declaration of solvency, and the shareholders pass a special resolution. This process is used to close a company that has fulfilled its purpose or when owners decide to retire.

A creditors' voluntary liquidation typically takes between six and twelve months to complete, depending on the complexity of realising assets and distributing funds to creditors. The liquidator must hold a meeting of creditors, prepare a final account, and apply for dissolution. The timeline can extend if there are legal disputes or unregistered assets.

Once a liquidator is appointed, the directors' powers cease, and the liquidator takes control of the company's affairs. Trading may continue only if the liquidator decides it is necessary to achieve a better outcome for creditors, such as completing existing orders. The liquidator will manage all cash flow and banking arrangements during this period.

Alternatives include a company voluntary arrangement (CVA), which allows the company to repay debts over time while continuing to trade. Administration is another option, providing a moratorium from creditor action while a restructuring plan is developed. For solvent companies, a members' voluntary liquidation or a striking-off application may be more appropriate.

In a compulsory liquidation, the court appoints an official receiver or an insolvency practitioner as liquidator. Their role is to investigate the company's affairs, realise assets, agree claims with creditors, and distribute any proceeds. They also report on the conduct of directors and may take legal action against them for misfeasance or wrongful trading.

You should select a practitioner who is licensed by a recognised professional body, such as the Insolvency Practitioners Association or the Institute of Chartered Accountants. Look for someone with experience in your industry and a track record of handling similar cases. A free initial consultation can help you assess their approach and fees.

If the company enters liquidation, your employment will be terminated automatically. As a director, you are not entitled to redundancy pay, but employees may claim from the National Insurance Fund for unpaid wages, holiday pay, and statutory redundancy. The liquidator will provide you with the necessary forms to make a claim as a preferential creditor.

The liquidator takes control of all company assets, including cash, property, equipment, and intellectual property. They will sell these assets to generate funds for creditors. Assets subject to a fixed charge are realised first to repay the secured lender, while floating charge assets and unsecured assets are distributed according to the statutory hierarchy.

Yes, you can liquidate a company with no assets, but the process may be funded by the directors or shareholders. In a creditors' voluntary liquidation, the directors must pay the liquidator's fees if there are insufficient assets. Alternatively, a compulsory liquidation can be petitioned by a creditor, but the court may require a deposit to cover costs.