Professional Company Liquidatorsin Tower Hamlets

A company liquidator is a licensed insolvency practitioner who manages the winding-up of a company. Their duties include realising assets, agreeing creditor claims, investigating director conduct, and distributing any available funds to creditors in the correct order of priority.

The cost of liquidation varies depending on the complexity of your company's affairs, the number of creditors, and the amount of assets to be realised. Most liquidators charge a fixed fee for a straightforward creditors' voluntary liquidation, but you should always request a detailed quote before proceeding.

A creditors' voluntary liquidation is initiated by the directors and shareholders when the company is insolvent. A compulsory liquidation is ordered by a court, usually following a winding-up petition from a creditor. The process and implications differ significantly, so it is important to seek advice early.

Yes, you can place a company into liquidation even if it is still trading, provided it is insolvent. However, it is important to stop trading once you know the company cannot pay its debts, as continuing to trade may lead to personal liability for wrongful trading.

The length of time depends on the complexity of the case. A simple creditors' voluntary liquidation may be completed in six to nine months, while more complex cases with substantial assets or legal issues can take several years. The liquidator will provide a timeline at the outset.

Employees are made redundant when a company enters liquidation. They may be entitled to claim redundancy pay, unpaid wages, and holiday pay from the National Insurance Fund, which is handled by the liquidator. The liquidator will provide employees with the necessary forms and guidance.

Yes, there are alternatives such as a company voluntary arrangement (CVA), administration, or informal restructuring. A CVA allows a company to repay debts over a period, while administration provides a moratorium from creditors. Each option has its own advantages and should be discussed with a licensed professional.

Yes, it is possible to liquidate a company with no assets, but the director or shareholders may need to fund the liquidation costs. In some cases, a liquidator may accept a reduced fee if there are no assets, but this is at their discretion. You should discuss the situation with a licensed practitioner.

As a director, you must cooperate fully with the liquidator, provide all company records and accounts, and attend meetings as required. You must also disclose any transactions that may be considered preferences or transactions at an undervalue, as these can be challenged by the liquidator.

In most cases, directors are not personally liable for company debts, as the company is a separate legal entity. However, if you have given personal guarantees, acted fraudulently, or traded wrongfully, you could be held liable. Seeking early advice from a liquidator can help you avoid these risks.