Professional Company LiquidatorsGuidance for Worksop

The cost depends on the complexity of the liquidation and the value of the company's assets. Creditors' voluntary liquidation is often funded by the company's assets, whilst a director may need to fund a members' voluntary liquidation personally if there are insufficient assets to cover the fees.

Eligibility depends on your company's solvency status. If the company cannot pay its debts as they fall due, it is insolvent and likely requires a creditors' voluntary liquidation. If the company is solvent but you wish to close it, a members' voluntary liquidation is the appropriate route.

The process begins with a board meeting to pass a resolution, followed by a meeting of creditors. A licensed insolvency practitioner is appointed as liquidator. They then take control of the company's assets, realise them for the benefit of creditors, and investigate the directors' conduct.

A simple liquidation might be concluded within six to twelve months. However, more complex cases involving substantial asset sales, legal disputes, or incomplete records can take considerably longer. Your appointed liquidator will provide a realistic timeline after their initial assessment of the company's affairs.

Alternatives include a company voluntary arrangement to repay debts over time, administration to attempt a rescue of the business, or informal negotiation with creditors. Each option has different implications for the company and its directors, so professional advice is essential before choosing a route.

Once a winding-up order is made or a resolution for voluntary liquidation is passed, the directors' powers cease. Trading must stop immediately except where the liquidator specifically authorises it to preserve asset value. Continuing to trade after this point could lead to personal liability for the directors.

Employees are automatically dismissed once a liquidation order is made. They become preferential creditors for unpaid wages and holiday pay up to statutory limits. The liquidator will handle redundancy claims and guide employees on how to claim from the National Insurance Fund for any shortfall.

Directors must cooperate fully with the liquidator, providing all company records, books, and accounts. They must also disclose any transactions that occurred before liquidation, particularly those involving connected parties. Failure to cooperate can result in personal liability, disqualification proceedings, or even criminal prosecution.

Generally, no. Limited liability protects directors from personal responsibility for company debts. However, personal liability can arise if you have given personal guarantees, traded wrongfully, or acted negligently. The liquidator will investigate your conduct and may pursue recovery if they find evidence of improper behaviour.

You should select a licensed insolvency practitioner who is regulated by a recognised professional body. Check their experience with companies of a similar size and sector to yours. Speak with them directly to ensure they explain the process clearly and offer practical advice rather than simply pushing you towards liquidation.