Professional Company Liquidators inYarnton for Director Advice

A licensed insolvency practitioner takes control of the company, realises its assets, agrees claims with creditors, and distributes any funds according to legal priority. They also investigate the directors' conduct and report to creditors, ensuring the process is transparent and compliant with insolvency law.

The cost varies based on the complexity of the case, the size of the company, and the number of creditors. Typically, fees are based on time spent or a percentage of asset realisations. You should obtain a clear written quote before proceeding, and discuss any potential shortfall with the practitioner.

Creditors' voluntary liquidation (CVL) is initiated by the directors and shareholders, whereas compulsory liquidation is forced by a court order, often following a creditor's petition. In a CVL, the directors appoint the liquidator, but in compulsory liquidation, the official receiver or a court-appointed insolvency practitioner handles the case.

Once liquidation begins, the liquidator takes control, and you lose the power to trade. However, the liquidator may continue trading for a short period if it helps to realise assets or complete work in progress. Any trading after the resolution to wind up is subject to the liquidator's authority.

Alternatives include administration, which aims to rescue the company as a going concern, or a company voluntary arrangement (CVA), which allows you to pay debts over time. Additionally, you might consider informal arrangements with creditors or a formal restructuring plan, depending on your specific circumstances.

The process typically lasts between six months and a year, but it can be longer if there are complex asset realisations or legal disputes. The liquidator must hold a final meeting of creditors within a reasonable timeframe, and the company is usually dissolved after the final account is filed.

Yes, to initiate a creditors' voluntary liquidation, the company must be insolvent, meaning it cannot pay its debts as they fall due. If the company is solvent, you would normally consider a members' voluntary liquidation, which is a different process used to distribute surplus assets.

Employees are automatically made redundant when a company enters liquidation. They may be entitled to claim redundancy pay, notice pay, and unpaid wages from the National Insurance Fund, but these claims are subject to statutory limits. The liquidator will provide guidance and necessary forms to employees.

In most cases, directors are not personally liable for company debts, but there are exceptions. If you have given personal guarantees, acted wrongfully, or traded while insolvent, you may be pursued for repayment. The liquidator investigates your conduct and can apply to the court for a contribution order.

You will need to provide the company's books and records, including financial statements, bank statements, debtors and creditors lists, asset registers, and details of any transactions with connected parties. The liquidator will also ask for a statement of affairs, which summarises assets and liabilities.