Professional Company Liquidatorsin Weston

A licensed insolvency practitioner acts as liquidator, realising the company's assets, settling debts in the correct order, and investigating the conduct of directors. They ensure the closure is handled lawfully, and they report to creditors and Companies House on the outcome.

Costs vary depending on the complexity of the company's affairs, but most fixed-fee packages for a creditors' voluntary liquidation start around £4,000 plus VAT and disbursements. For a solvent members' voluntary liquidation, fees are often lower. Always request a clear quote before proceeding.

A members' voluntary liquidation is available to a company that is solvent, meaning it can pay all debts in full within 12 months. Directors must make a statutory declaration of solvency, and shareholders must pass a special resolution to wind up the company voluntarily.

The directors call a board meeting to pass a resolution to wind up, then convene a shareholder meeting and a separate meeting of creditors. A licensed insolvency practitioner is appointed as liquidator, and they take control of the assets and distribute proceeds to creditors.

A creditors' voluntary liquidation typically takes six to twelve months to complete, depending on asset realisation and any investigations. A members' voluntary liquidation can often be completed in three to six months if the company's affairs are straightforward.

Once a resolution to wind up is passed, the liquidator takes control, and directors cease to have authority to trade. However, the liquidator may continue trading for a short period to sell stock or complete contracts, but only with the aim of maximising returns for creditors.

Alternatives include a company voluntary arrangement (CVA), administration, or informal restructuring. A CVA allows the company to repay debts over time while continuing to trade. Administration provides a moratorium from creditors while a restructuring plan is prepared. Your adviser can explain the pros and cons.

Employees are automatically made redundant when a company enters liquidation, unless the liquidator retains them to assist with winding down. Employees may claim redundancy pay, unpaid wages, and holiday pay from the National Insurance Fund, though there are statutory limits on these amounts.

No, liquidation is typically a voluntary process that does not involve court proceedings. Creditors' voluntary liquidation and members' voluntary liquidation are both initiated by shareholder resolutions. Only in rare cases, such as a compulsory winding-up order, does the court become involved.

Directors must cooperate with the liquidator and provide all necessary records. If misconduct is found, the liquidator may report the director to the Insolvency Service, which could lead to disqualification or personal liability. However, most directors act honestly and face no further action.