Professional Company LiquidatorsServing Watchfield Businesses

A licensed insolvency practitioner takes control of the company, realises its assets, settles creditor claims in the correct statutory order, and investigates the conduct of directors. They then apply to dissolve the company, bringing its legal existence to an end. Their role is to maximise returns for creditors whilst ensuring compliance with insolvency law.

Costs vary depending on the complexity of the case, the size of the company, and the number of creditors. Typically, fees are taken from the realisation of assets, but if there are no assets, creditors may agree to fund the process. Always ask for a clear breakdown of fees before instructing a practitioner.

A members' voluntary liquidation is available to solvent companies whose directors can make a statutory declaration of solvency, confirming the company can pay its debts in full within a set period, usually twelve months. This process is used when owners decide to close a profitable business or retire, and it requires a special resolution from shareholders.

Creditors' voluntary liquidation is initiated by the directors and shareholders when the company is insolvent, leading to a meeting of creditors. Compulsory liquidation is a court order obtained by a creditor through a winding-up petition. Both result in the appointment of a liquidator, but the process and control differ significantly.

A straightforward creditors' voluntary liquidation can complete in around six to twelve months, depending on the complexity of asset realisation and creditor claims. Compulsory liquidation may take longer due to court procedures. The liquidator must file final accounts and notify Companies House before the company is formally dissolved.

Once a decision to liquidate is made, you should cease trading immediately to avoid wrongful trading claims. If you continue trading after the company is insolvent, you may be personally liable for any additional debts incurred. A licensed practitioner can advise on the correct point to stop trading and protect your position.

Alternatives include administration, company voluntary arrangement, or a formal restructuring plan. Administration gives a breathing space from creditors whilst a rescue is attempted. A company voluntary arrangement allows the company to pay debts over time. Each option has different implications for directors and creditors, so professional advice is essential.

No, a creditors' voluntary liquidation does not require court attendance. The process involves a virtual or physical meeting of shareholders and creditors, where the liquidator is appointed. However, if a winding-up petition has been issued, you may need to attend court hearings unless the petition is withdrawn or converted to a voluntary arrangement.

The liquidator takes control of all company assets, including cash, stock, equipment, and property. They will sell these assets to generate funds for creditors. Secured creditors, such as banks with fixed charges, have priority over floating charge holders and unsecured creditors. Any remaining funds are distributed according to statutory rules.

Generally, no, as the company is a separate legal entity. However, if you have given personal guarantees or acted fraudulently, you may be liable. Also, if you traded whilst insolvent and knew the company could not pay its debts, a court may order you to contribute to company assets. Proper advice helps you avoid such risks.