Professional Company Liquidatorsin Wellington

Costs vary depending on company size, asset complexity, and creditor numbers. Creditors' voluntary liquidation is often funded from company assets, whilst a simple solvent closure may cost less. Always obtain a fixed fee quote from a licensed practitioner before proceeding.

Any insolvent company whose directors believe it cannot pay its debts as they fall due is eligible. Directors must swear a declaration of solvency only for a members' voluntary liquidation. For insolvent companies, a creditors' meeting is required to appoint a liquidator.

The initial appointment can happen within a few weeks once all paperwork is prepared. The liquidator's work continues for several months or longer, depending on asset sales, legal claims, and finalising creditor distributions. A simple case might conclude within six months.

A members' voluntary liquidation is for solvent companies where directors swear a declaration of solvency. A creditors' voluntary liquidation is for insolvent companies. The distinction affects who controls the process, how creditors are consulted, and the liquidator's statutory duties.

Yes, but funding the liquidation is a practical issue. If there are no assets, creditors may not support a formal appointment. In some cases, directors or third parties fund the process to achieve a clean strike-off or to investigate prior transactions.

Employees are made redundant when liquidation begins. They may claim statutory redundancy pay, notice pay, and unpaid wages from the National Insurance Fund. The liquidator provides each employee with form RP1 to help them make these claims.

Generally no, but exceptions exist. If you traded whilst insolvent and knew there was no reasonable prospect of avoiding liquidation, you could face wrongful trading claims. Fraudulent trading or misfeasance also lead to personal liability. Proper advice before trading on is essential.

Alternatives include a company voluntary arrangement to repay debts over time, administration to restructure or sell the business, or a simple strike-off if the company is solvent. Each option has different implications for directors, creditors, and employees.

Look for a practitioner who is licensed by a recognised professional body such as the Insolvency Practitioners Association or the ICAEW. Check their experience with companies of your size and sector. A local practitioner can offer face-to-face meetings and understand regional issues.

The liquidator must act in the interests of all creditors, realise assets at the best price, investigate the directors' conduct, and report any misconduct to the Insolvency Service. They must also distribute funds according to the statutory priority order and provide regular updates.