Company Liquidators in Teddingtonfor Professional Advice and Support

The cost of liquidation varies depending on the complexity of your company's affairs, the number of creditors, and the work involved. Most licensed insolvency practitioners will provide a fixed fee quotation after an initial review. You should always ask for a clear breakdown of fees before agreeing to proceed.

To enter creditors' voluntary liquidation, your company must be insolvent, meaning it cannot pay its debts as they fall due. The directors must pass a resolution to wind up the company, and then a meeting of creditors is held to confirm the appointment of a liquidator. Your company must also have sufficient assets to fund the process.

The initial liquidation meeting can be arranged within a few weeks of instructing a practitioner. However, the full process of realising assets, investigating affairs, and distributing funds to creditors typically takes between six and twelve months. Complex cases with legal disputes or overseas assets can take longer.

Once a company enters liquidation, trading must cease immediately, except for actions necessary to preserve asset value or complete essential contracts. The liquidator takes control of the company's affairs, and directors lose their powers. Continuing to trade after liquidation is a serious offence and may lead to personal liability.

Alternatives include a company voluntary arrangement (CVA), administration, or informal restructuring with creditors. A CVA allows you to repay debts over time whilst keeping the company trading. Administration provides a moratorium from creditor action while a rescue plan is attempted. Your chosen practitioner can assess which option suits your circumstances.

In most cases, directors are not personally liable for company debts if they have acted properly and within the law. However, if you have given personal guarantees, signed a director's loan account, or been found guilty of wrongful trading or fraudulent activity, you may be pursued for repayment. Always seek legal advice if you are unsure.

Look for a practitioner who is licensed by a recognised professional body, such as the Insolvency Practitioners Association or the ICAEW. Check their experience with similar companies and ask for references. You can also verify their credentials on the public register of insolvency practitioners.

You will need to provide the company's statutory records, including registers of members and directors, financial statements, bank statements, tax returns, and details of any assets and liabilities. You should also prepare a statement of affairs listing all creditors and what is owed to each. The liquidator will review this information to guide the process.

In a company with multiple directors, a board resolution is typically required to call a creditors' meeting. If other directors disagree, you may need to call a general meeting of shareholders to pass an ordinary resolution. In extreme cases, you could apply to the court for a winding-up order, but this is less common.

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