Professional Company LiquidatorsServing Wanstead Businesses

A licensed insolvency practitioner takes control of the company, realises its assets, settles debts in the correct order of priority, and investigates the directors' conduct. They then apply to dissolve the company, bringing its legal existence to an end.

Costs vary depending on the complexity of the case, the number of creditors, and the work required to realise assets. A licensed practitioner will provide a fixed fee quote or an estimate based on an initial assessment. Always ask for a breakdown before proceeding.

Directors of an insolvent company that cannot pay its debts as they fall due can propose a creditors' voluntary liquidation. A majority of shareholders must pass a resolution, and creditors must approve the appointment of the liquidator at a separate meeting.

A straightforward creditors' voluntary liquidation typically completes within six to twelve months, but complex cases with numerous assets or legal disputes can take longer. The liquidator must file final accounts and a report to creditors before the company is dissolved.

Compulsory liquidation is ordered by a court, usually following a winding-up petition from a creditor. Voluntary liquidation is initiated by the directors and shareholders. Both lead to the company being wound up, but the procedures and control differ significantly.

Once liquidation begins, the liquidator takes over control of the company. Directors lose their powers to trade or deal with assets. However, the liquidator may continue trading for a short period to complete contracts or sell the business as a going concern, but only with the approval of creditors.

Depending on your situation, you might consider a company voluntary arrangement (CVA) to repay debts over time, administration to give breathing space from creditors, or a formal restructuring. An insolvency practitioner can advise which route is most suitable.

Employees are automatically made redundant when a company enters liquidation, unless the liquidator retains them to help wind down operations. They may be entitled to claim statutory redundancy pay, unpaid wages, and holiday pay from the National Insurance Fund.

Generally, directors are not personally liable for company debts if they have acted properly. However, if you have given personal guarantees, or if wrongful trading or fraudulent trading is proven, you could be held personally responsible. Taking advice early helps mitigate these risks.

Look for a licensed insolvency practitioner who is a member of a recognised professional body, such as the Insolvency Practitioners Association. Check their experience with similar companies, ask about fees, and ensure they are authorised to act. You can also connect with a specialist listed on AccountingFirms.