Company Liquidators in StrabaneProfessional Guidance for Strabane

The cost of liquidation varies depending on the size and complexity of your company. Typically, fees range from a few thousand pounds for a straightforward creditors' voluntary liquidation to more for complex cases. You should obtain a fixed fee quote from a licensed insolvency practitioner before proceeding.

Any limited company that is insolvent, meaning it cannot pay its debts as they fall due, may enter liquidation. Directors must pass a resolution to wind up the company, and creditors must approve the appointment of a liquidator. A licensed practitioner will assess your financial position to confirm eligibility.

A simple creditors' voluntary liquidation can be completed in about six to nine months, but complex cases may take longer. The liquidator must realise assets, investigate the company's affairs, and distribute funds to creditors. The timeline also depends on the cooperation of directors and the availability of records.

Once a liquidator is appointed, directors lose control of the company, and trading must cease unless the liquidator continues for a short period to maximise asset value. Continuing to trade after insolvency without proper advice can lead to personal liability for wrongful trading.

Alternatives include a company voluntary arrangement (CVA) to restructure debts, administration to protect the business from creditors, or informal negotiations with creditors. A licensed insolvency practitioner can help you assess which option is most suitable based on your company's viability and cash flow projections.

A liquidator is a licensed insolvency practitioner who takes control of the company, realises its assets, investigates the reasons for insolvency, and distributes proceeds to creditors. They also ensure that directors comply with their duties and report any misconduct to the appropriate authorities.

Generally, directors are not personally liable for company debts if they have acted properly. However, personal liability can arise if you have given personal guarantees, or if you have been involved in wrongful trading, fraudulent trading, or other misconduct. Professional advice is essential to understand your exposure.

Directors can initiate a creditors' voluntary liquidation by passing a resolution, but the appointment of a liquidator must be approved by creditors at a meeting. If creditors do not approve, the court may appoint an alternative liquidator. In some cases, a court winding-up may be necessary.

You will need to provide the company's financial records, including bank statements, tax returns, debtor and creditor lists, asset registers, and details of any director loans. The liquidator will also require a statement of affairs, which outlines the company's assets and liabilities at the date of liquidation.

Employees are made redundant once the company enters liquidation. They may be entitled to claim unpaid wages, holiday pay, and redundancy pay from the National Insurance Fund. The liquidator will provide employees with the necessary forms and guidance on making claims.