Professional Company Liquidators inWest Molesey for Businesses

The cost of liquidation varies depending on the complexity of the company's affairs, the number of creditors, and the chosen procedure. Creditors' voluntary liquidation is often funded from company assets, while a members' voluntary liquidation requires a licensed insolvency practitioner to be appointed, with fees typically ranging from a few thousand pounds upwards.

Solvent liquidation, known as members' voluntary liquidation, is used when a company can pay its debts in full, usually for restructuring or retirement. Insolvent liquidation, or creditors' voluntary liquidation, applies when debts cannot be paid. The procedure chosen affects the liquidator's role, the distribution of assets, and the director's ongoing responsibilities.

Yes, directors can initiate a creditors' voluntary liquidation by passing a board resolution and calling a shareholder meeting to approve the winding-up resolution. A licensed insolvency practitioner must be appointed to act as liquidator. Court involvement is only necessary for compulsory liquidation, which is typically initiated by creditors or other parties.

The length of liquidation depends on the complexity of the company's assets and liabilities. A straightforward creditors' voluntary liquidation may complete within six to twelve months, while a members' voluntary liquidation can be quicker if all debts are settled and the company's affairs are in order. Complex cases with litigation or asset realisation can take longer.

Employees are made redundant when the company enters liquidation. They may be entitled to claim statutory redundancy pay, unpaid wages, holiday pay, and other arrears from the National Insurance Fund. The liquidator will provide employees with the necessary forms and guidance on making claims, and they will be treated as preferential creditors for certain amounts.

Yes, alternatives include company voluntary arrangements (CVAs), administration, or informal restructuring with creditors. A CVA allows the company to continue trading while paying debts over a period, subject to creditor approval. Administration provides a moratorium from creditor action while a rescue plan is attempted. Directors should seek professional advice to determine the most suitable option.

Directors must cooperate fully with the liquidator, provide all company records and accounts, and disclose any transactions that may be void or preferential. They must not conceal assets or destroy books. Failure to comply can result in personal liability, disqualification, or even criminal prosecution, so it is essential to act transparently and seek advice.

Generally, directors are not personally liable for company debts, but exceptions exist. If wrongful trading is proven, or if a director has given a personal guarantee, or has misused funds, they may be pursued personally. The liquidator can also claim for misfeasance if a director has breached their duties, leading to a court order for compensation.

To begin liquidation, you will need to provide the insolvency practitioner with details of the company's assets, liabilities, creditors, and any existing contracts or leases. You should also have up-to-date accounts, a list of shareholders, and details of any recent transactions. The practitioner will use this information to assess solvency and recommend the correct procedure.

In a members' voluntary liquidation, directors must make a statutory declaration of solvency, confirming the company can pay its debts in full within twelve months. Shareholders then pass a resolution to wind up, and a licensed insolvency practitioner is appointed as liquidator. The liquidator realises assets, pays creditors, and distributes surplus to shareholders before dissolving the company.