Company Liquidators in Trafalgarfor Expert Advice and Support

A company liquidator is a licensed insolvency practitioner who manages the closure of a company. Their role includes realising assets, settling creditor claims, investigating director conduct, and ensuring the company is dissolved legally and efficiently.

The cost of liquidation varies depending on the complexity of the case, the size of the company, and the number of creditors. Creditors' voluntary liquidation is often funded from company assets, but you should obtain a fixed-fee quote from a licensed practitioner before proceeding.

A liquidator can be appointed by the company's directors through a shareholders' resolution, or by creditors at a creditors' meeting. In some cases, a court may appoint a liquidator following a winding-up petition. A licensed insolvency practitioner must be appointed.

Compulsory liquidation is forced by creditors through a court order, often after a winding-up petition. Voluntary liquidation is initiated by the company's directors or shareholders. Creditors' voluntary liquidation is the most common type for insolvent companies.

A straightforward creditors' voluntary liquidation typically takes between six and twelve months to complete. However, complex cases with asset realisation or legal disputes can take longer. The liquidator will provide a timeline at the outset based on your specific circumstances.

Once a liquidator is appointed, they take control of the company and directors lose their powers. You cannot continue trading in the normal sense. However, the liquidator may allow limited trading to complete contracts or sell assets for the benefit of creditors.

Alternatives include administration, company voluntary arrangement, or informal arrangements with creditors. These options aim to rescue the company or part of it. A licensed insolvency practitioner can assess your situation and recommend the most suitable course of action.

Directors are generally not personally liable for company debts if they have acted properly. However, personal liability can arise if you have given personal guarantees, traded wrongfully, or misused company funds. A liquidator will investigate your conduct and may pursue recovery if necessary.

Employees are made redundant when a company enters liquidation. The liquidator is responsible for ensuring employees receive their statutory redundancy payments and any outstanding wages or holiday pay, which may be claimed from the National Insurance Fund if the company lacks assets.

Yes, you can start a new company after liquidation, but there are restrictions. If you have been a director of an insolvent company, you may be subject to a disqualification order or undertaking. You should also consider whether using a similar name would breach the 'phoenix' provisions.