Expert Company LiquidatorsServing Tarporley Businesses

The cost varies depending on the complexity of your company's affairs, the number of creditors, and the work required to realise assets. A licensed insolvency practitioner will provide a fixed fee quotation before you commit. You should always ask for a written breakdown of charges to avoid unexpected costs during the process.

Your company must be insolvent, meaning it cannot pay its debts as they fall due, or its liabilities exceed its assets. A director can propose a creditors' voluntary liquidation if the company is insolvent. Alternatively, a solvent company can be struck off if it has no debts. An insolvency practitioner will assess your financial position to confirm eligibility.

Directors must hold a board meeting to pass a resolution for liquidation, then convene a meeting of shareholders and a separate meeting of creditors. A licensed insolvency practitioner is appointed as liquidator to manage the realisation of assets, settle creditor claims, and distribute any remaining funds. The process typically concludes within twelve months.

A compulsory liquidation begins with a winding-up petition presented to the court, usually by a creditor. A hearing is scheduled, and if the court grants the order, an official receiver is appointed. The entire process can take several months or longer, depending on the complexity of the case and the court's timetable.

Yes, you may consider a company voluntary arrangement, administration, or informal negotiation with creditors. A formal insolvency procedure is not always necessary. An insolvency practitioner can review your cash flow forecasts and balance sheet to determine whether a rescue plan or restructuring might preserve the business as a going concern.

Employees are automatically made redundant when a liquidation order is made, unless the liquidator retains them to assist with the winding-up process. They may be entitled to claim statutory redundancy pay, unpaid wages, and holiday pay from the National Insurance Fund. The liquidator will provide the necessary forms and guidance to each affected employee.

Directors can continue trading during the period before a formal liquidation order is made, but they must act in the best interests of creditors. Trading while insolvent without a realistic prospect of recovery may lead to personal liability for wrongful trading. You should seek professional advice immediately if you are considering this route.

You must provide the liquidator with the company's statutory books, including registers of members and directors, minutes of meetings, and share certificates. Financial records such as bank statements, sales ledgers, purchase invoices, and tax returns are also required. The liquidator will use these documents to reconstruct the company's financial history and report to creditors.

Generally, directors are not personally liable for company debts unless they have given personal guarantees, acted fraudulently, or engaged in wrongful trading. The liquidator will investigate the conduct of directors and may pursue claims against them if there is evidence of misfeasance. Most straightforward liquidations do not result in personal liability for directors.

You should select a licensed insolvency practitioner who is regulated by a recognised professional body, such as the Insolvency Practitioners Association or the Institute of Chartered Accountants. Check their experience with similar cases, read client testimonials, and confirm they offer a fixed fee. A face-to-face consultation is advisable before you make any commitment.