Professional Company Liquidatorsin Swanley, Here to Help

A company liquidator is a licensed insolvency practitioner who takes control of the company, realises its assets, settles outstanding debts with creditors, and distributes any remaining funds to shareholders. They also investigate the conduct of directors and ensure that the liquidation process is carried out fairly and in accordance with insolvency law.

The cost of liquidation varies depending on the complexity of the case, the size of the company, and the number of creditors. Typically, fees are paid from the company's assets, but if there are insufficient assets, a director may need to fund the process personally. A licensed practitioner will provide a clear fee structure before you commit.

Yes, you can liquidate a company with no assets, but it may require a deposit to cover the liquidator's fees. This is often called a 'no-asset liquidation'. The process still involves a full investigation of the company's affairs and is a legal way to close a company that has no funds to pay creditors.

Creditors' voluntary liquidation (CVL) is initiated by the directors when the company is insolvent. Compulsory liquidation is forced by a creditor through a court order, often after a winding-up petition. In a CVL, the directors appoint the liquidator, whereas in compulsory liquidation, the court appoints the Official Receiver.

The length of the process depends on the complexity of the case. A straightforward CVL might be completed within six to twelve months, but cases with complex asset sales or legal disputes can take longer. The liquidator is responsible for concluding the process as quickly as possible while fulfilling statutory duties.

Alternatives include a company voluntary arrangement (CVA), administration, or formal restructuring. A CVA allows a company to repay debts over time while continuing to trade. Administration provides protection from creditors while a restructuring plan is developed. Each option has different implications, and professional advice is essential to determine the best route.

Generally, directors are not personally liable for company debts, but exceptions exist. If you have given a personal guarantee, acted fraudulently, or traded while knowing the company could not pay its debts, you may be held liable. A liquidator will investigate your conduct and may seek recovery if wrongful trading is found.

A directors' loan account records money borrowed from or lent to the company by a director. In liquidation, if you owe the company money, the liquidator will demand repayment, as it is an asset of the company. If you are owed money, you become a creditor, but you are likely to be paid only after secured and preferential creditors.

No, a creditors' voluntary liquidation does not involve court proceedings. It is a shareholder and creditor process. The directors call a meeting of shareholders to pass a resolution to wind up the company, and then a meeting of creditors is held to confirm the appointment of the liquidator.

When a company is liquidated, employees are made redundant. They may be entitled to redundancy pay, notice pay, and holiday pay, which are paid as preferential claims from the company's assets. If there are insufficient funds, the government's redundancy payments service may cover some statutory entitlements.