Professional Company LiquidatorsServing Stroud Businesses

A licensed insolvency practitioner acts as the liquidator, realising the company's assets, investigating its affairs, and distributing funds to creditors in the correct order. They also handle legal paperwork and ensure the company is formally dissolved at the end of the process.

Costs vary based on the size and complexity of the company. Typically, fees are drawn from the company's assets, but if there are insufficient assets, creditors may fund the process. Always ask for a clear fee structure upfront to avoid surprises.

A company is eligible for creditors' voluntary liquidation if it is insolvent, meaning it cannot pay its debts as they fall due. The directors must pass a resolution and call a meeting of creditors within 14 days to confirm the appointment of a liquidator.

The process typically takes between six and twelve months, depending on the complexity of the company's affairs. Simple cases with few assets may be concluded sooner, while those with disputes or investigations can take longer.

No, once a liquidator is appointed, the company ceases trading immediately. The liquidator takes control of the business and assets to protect creditors' interests. Any trading after the appointment is illegal and could lead to personal liability for directors.

Alternatives include administration, which aims to rescue the business as a going concern, or a company voluntary arrangement (CVA) to repay debts over time. Informal arrangements with creditors are also possible, but they lack the legal protection of formal procedures.

Employees are made redundant immediately upon liquidation. They may claim redundancy pay, unpaid wages, and holiday pay from the National Insurance Fund, which acts as a safety net. The liquidator will provide the necessary forms and guidance.

Creditors' meetings can be held remotely or by proxy, so you may not need to attend in person. However, it is advisable to participate to stay informed and to vote on key decisions, such as the choice of liquidator.

Directors are not automatically disqualified, but they must cooperate with the liquidator's investigation. If misconduct is found, such as wrongful trading or fraud, they may face personal liability or disqualification for up to 15 years.

For a creditors' voluntary liquidation, directors can appoint a liquidator directly by passing a resolution and calling a creditors' meeting. A court order is only necessary for compulsory liquidation, which is typically initiated by creditors.