Expert Company LiquidatorsServing Tunbridge Wells

A company liquidator is a licensed insolvency practitioner who manages the closure of a company. Their role involves realising assets, settling creditor claims, investigating director conduct, and ensuring legal requirements are met. They act in the interests of creditors while providing guidance to directors throughout the process.

The cost of liquidation varies depending on the complexity of the company's affairs, the number of creditors, and the value of assets. Typically, fees range from a few thousand pounds for a straightforward creditors' voluntary liquidation to higher amounts for complex cases. A licensed practitioner can provide a tailored quote after an initial assessment.

Voluntary liquidation is initiated by the company's directors or shareholders, often through a creditors' voluntary liquidation when the company is insolvent. Compulsory liquidation is forced by a court order, usually following a creditor's petition. The process and implications differ significantly, so professional advice is essential.

Once a company enters liquidation, trading must cease immediately, except for limited activities necessary to preserve asset value or complete statutory obligations. Continuing to trade without approval can lead to personal liability for directors. A liquidator will advise on what actions are permissible during the process.

Any company that is insolvent—meaning it cannot pay its debts as they fall due—can be placed into liquidation. This includes companies with liabilities exceeding assets or those facing legal action from creditors. Directors must pass a resolution for voluntary liquidation, and a licensed insolvency practitioner must be appointed.

The duration depends on the complexity of the company's financial affairs. A straightforward creditors' voluntary liquidation may conclude within six to twelve months, while cases involving asset realisation, legal disputes, or investigations can take longer. Your liquidator will provide a timeline based on the specific circumstances.

Yes, alternatives include administration, which aims to rescue the company as a going concern, or a company voluntary arrangement (CVA), which proposes a repayment plan to creditors. In some cases, informal arrangements or restructuring may be possible. A licensed practitioner can assess which option is most suitable for your situation.

Employees are entitled to claim certain payments from the National Insurance Fund, including arrears of wages, holiday pay, and redundancy pay. The liquidator will provide the necessary documentation to support these claims. Employees are also entitled to notice pay, subject to statutory limits.

Directors can be held personally liable if they have acted wrongfully, such as trading while insolvent, misusing company funds, or breaching fiduciary duties. The liquidator may pursue claims for wrongful trading or misfeasance. Seeking professional advice early can help mitigate these risks.

You will need to provide company records, including financial statements, bank statements, tax returns, details of assets and liabilities, and a list of creditors. The liquidator will also require information about any transactions made in the period leading up to liquidation. Full disclosure is essential for a smooth process.