Professional Company LiquidatorsServing Wallington Businesses

A company liquidator is a licensed insolvency practitioner who manages the closure of a company. They take control of assets, sell them, distribute funds to creditors, and ensure that all legal requirements are met. They also investigate the conduct of directors and report to creditors and regulatory bodies.

Costs vary depending on the complexity of the case and the size of the company. Typically, fees are based on time spent or a percentage of asset realisations. You should obtain a fixed fee quote upfront, but always confirm whether it covers all statutory duties and disbursements.

Compulsory liquidation is forced by a court order, often due to a creditor's petition. Voluntary liquidation is initiated by the company's shareholders. If the company is insolvent, it is called a Creditors' Voluntary Liquidation, whereas a solvent company uses a Members' Voluntary Liquidation.

The process typically takes between 6 and 12 months, but it can be longer if there are complex asset sales or legal disputes. The liquidator must collect and sell assets, agree claims from creditors, and then distribute funds. Final closure occurs when the liquidator is released.

If your company is insolvent, continuing to trade could lead to personal liability for wrongful trading. You should seek professional advice immediately. A liquidator can help you decide whether to stop trading or continue temporarily to complete existing orders, but only if it benefits creditors.

Alternatives include a Company Voluntary Arrangement (CVA), which is a formal agreement to pay debts over time, or administration, which may allow the business to continue as a going concern. Sometimes, a negotiated repayment plan with creditors can avoid formal proceedings altogether.

Even if your company has no assets, you still need a licensed insolvency practitioner to handle the liquidation properly. They will confirm that there are no assets to distribute and will deal with statutory filings. Without a formal liquidation, the company remains on the register and directors remain liable.

Employees are automatically dismissed when a company enters liquidation. The liquidator becomes responsible for settling employee claims, including unpaid wages, holiday pay, and redundancy pay. These claims may be paid from the National Insurance Fund if there are insufficient assets.

In most cases, limited liability protects directors from personal liability for company debts. However, if you have given personal guarantees or acted fraudulently, you could be held liable. Wrongful trading or misfeasance can also lead to personal responsibility for some debts.

You should choose a licensed insolvency practitioner who is registered with a recognised professional body. Look for someone with experience in your industry and who offers a clear fee structure. It is wise to speak with more than one professional to compare approaches.