Professional Company LiquidatorsServing Westhill Businesses

A company liquidator is a licensed insolvency practitioner who manages the closure of an insolvent company. They collect and sell assets, agree claims with creditors, investigate the directors' conduct, and distribute any funds available. Once the process is complete, the company is dissolved.

The cost of liquidation varies based on the complexity of the company's affairs, the number of creditors, and the value of assets. Typically, fees range from a few thousand pounds to more for larger cases. Always request a fixed fee quote before appointing a liquidator.

A director can appoint a liquidator by passing a shareholder resolution, but only if the company is insolvent. Creditors can also petition the court to wind up a company. The liquidator must be a licensed insolvency practitioner, and their appointment must follow legal procedures.

A straightforward creditors' voluntary liquidation often completes within six to twelve months. However, complex cases with many assets or legal disputes can take longer. The liquidator must file final accounts with Companies House, and the company is usually dissolved shortly after.

Once a liquidator is appointed, the directors' powers cease, and the liquidator takes control. Trading can only continue if the liquidator decides it is beneficial for the creditors, for example to sell stock or complete contracts. You cannot trade normally after the resolution to wind up.

Voluntary liquidation is initiated by the directors or shareholders, usually via a creditors' voluntary liquidation. Compulsory liquidation is ordered by a court, often after a creditor presents a winding-up petition. The process and costs differ, and the trigger for each is distinct.

Yes, alternatives include administration, company voluntary arrangement, or informal arrangements with creditors. A licensed insolvency practitioner can assess whether your company is viable and recommend the most suitable route. Sometimes a turnaround plan can rescue the business, preserving jobs and value.

Employees are made redundant when a liquidator is appointed, unless the liquidator retains them temporarily. They may claim statutory redundancy pay and other entitlements from the National Insurance Fund. The liquidator provides necessary documentation to support their claims.

Yes, to use a creditors' voluntary liquidation, the company must be unable to pay its debts as they fall due. If the company is solvent, a members' voluntary liquidation is used to close it down. A liquidator will assess solvency before proceeding.

Yes, it is possible to liquidate a company with no assets, but the process may be funded by the directors or creditors. The liquidator must be paid, and if there are no funds, a director may need to cover the costs. Alternatively, a strike-off may be possible if the company is not trading.