Professional Company LiquidatorsServing Upton Businesses

The cost varies depending on the complexity of your company's affairs, the number of creditors, and the assets involved. Most liquidators offer a fixed fee for straightforward cases. You should request a detailed quote upfront that includes all statutory advertising costs and disbursements. We recommend comparing proposals from a couple of different licensed practitioners before you commit to any particular insolvency firm.

A members' voluntary liquidation is only possible if your company is solvent. This means it can pay all its debts in full, including interest, within a period not exceeding twelve months. Your directors must make a statutory declaration of solvency. If you are not certain about your solvency status, an accountant can help you prepare a detailed statement of affairs to confirm your position.

The process begins with a board meeting where directors resolve to call a general meeting of shareholders. Shareholders then pass a special resolution to wind up the company voluntarily. The liquidator is appointed at that meeting. The liquidator takes control of the company's assets, notifies creditors, and begins the process of realising assets and distributing funds to those owed money.

A compulsory liquidation, which is ordered by a court, can take many months or even years to conclude. The initial court hearing might happen within a few weeks of the petition being presented. However, the liquidator's work, which involves investigating the company's affairs and realising assets, can take a significant amount of time, especially if there are complex transactions to unravel.

Once a liquidator is appointed, they take control of the company. You lose your powers as a director. The liquidator may continue to trade the business for a short period to sell it as a going concern or to complete work in progress. You cannot make any trading decisions or enter into new contracts without the liquidator's express permission.

There are several alternatives to liquidation. A company voluntary arrangement allows you to propose a formal repayment plan to your creditors. Administration provides a period of protection from legal action while a restructuring plan is developed. A simple strike-off is an option for a dormant company that has no debts. Each option has different implications for directors and creditors.

When a liquidator is appointed, all employees are automatically dismissed. The liquidator will assess claims for unpaid wages, holiday pay, and redundancy pay. Employees who are owed money may be able to claim certain statutory payments from the National Insurance Fund. The liquidator will provide the necessary forms and guidance to help employees make their claims.

The official receiver is an officer of the court and acts as a liquidator in compulsory liquidation cases. They are responsible for investigating the company's affairs and the conduct of its directors. They will call for a statement of affairs from the directors. In some cases, they may call for a public examination of directors to ask questions about the company's failure.

A creditors' voluntary liquidation is initiated by the directors and shareholders, who pass a resolution to wind up the company. A compulsory liquidation is initiated by a creditor who presents a winding-up petition to the court. In a compulsory liquidation, the court appoints the liquidator, often the official receiver. The key difference is who starts the process and who controls it.

Generally, no. The limited liability status of a company protects directors from personal liability for business debts. However, personal liability can arise if you have given a personal guarantee for a loan or a lease. You could also be liable if you have traded wrongfully or fraudulently, or if you have misused company funds. The liquidator will investigate your conduct.