Professional Company Liquidatorsin Sturminster Newton

A company liquidator is a licensed insolvency practitioner who manages the winding-up of a company. They sell assets, settle debts, investigate the company's affairs, and ensure that creditors are treated fairly. They also handle legal paperwork and communicate with all parties involved.

The cost varies depending on the complexity of the company's affairs. Typically, fees range from £4,000 to £8,000 plus VAT, but this can be higher for larger companies. The liquidator's fee is paid from the company's assets, and in some cases, from the proceeds of asset sales.

A liquidator can be appointed by the company's directors, shareholders, or creditors. For a voluntary liquidation, shareholders pass a resolution. For a compulsory liquidation, a creditor can petition the court. In each case, the liquidator must be a licensed insolvency practitioner.

The process involves a meeting of shareholders or creditors, the appointment of a liquidator, the realisation of assets, the settlement of debts, and the final dissolution of the company. The liquidator also investigates the conduct of directors and reports to creditors.

A simple liquidation can be completed in as little as six months, but complex cases may take a year or more. The timeline depends on factors such as the number of assets, the level of creditor claims, and any legal challenges that arise.

Once a liquidator is appointed, the directors lose control of the company. The liquidator takes over the management of the company's affairs. You cannot continue trading in the normal sense, but the liquidator may continue trading for a short period to maximise asset value.

Voluntary liquidation is initiated by the company's directors or shareholders, often when the company is insolvent. Compulsory liquidation is forced by a creditor through a court order. Both result in the company being wound up, but the process and control differ.

Alternatives include company voluntary arrangement (CVA), administration, or informal restructuring. A CVA allows the company to pay debts over time, while administration gives a moratorium from creditors. Restructuring may involve changing the business model or reducing costs.

Employees are usually made redundant when a liquidator is appointed. They may be entitled to redundancy pay, notice pay, and holiday pay from the National Insurance Fund. The liquidator will provide the necessary forms and guidance to employees.

No, you can appoint a liquidator directly. However, it is advisable to seek legal advice if your situation is complex, such as if there are disputes with creditors or potential wrongful trading claims. A licensed insolvency practitioner can also provide guidance.