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Frequently asked questions
What is the role of a company liquidator in Acton?
A company liquidator in Acton is a licensed insolvency practitioner who manages the winding up of an insolvent company. Their role includes realising company assets, distributing funds to creditors in the correct statutory order, investigating the company's affairs and director conduct, and ensuring that all legal requirements are met. They act in the best interests of creditors while also helping directors understand their duties and potential liabilities.
How much does company liquidation cost in Acton?
The cost of liquidation in Acton varies depending on the complexity of the case, the size of the company, and the number of creditors. Many liquidators offer a fixed-fee structure for straightforward creditors voluntary liquidations (CVL). Our Acton team provides transparent pricing with no hidden charges, and we will provide a detailed quote after an initial free assessment of your company's financial situation.
What is the difference between compulsory and creditors voluntary liquidation?
Compulsory liquidation is a court-ordered process, usually initiated by a creditor through a winding-up petition, whereas creditors voluntary liquidation (CVL) is initiated by the company's directors and shareholders. In a CVL, the directors pass a resolution to wind up the company, and a liquidator is appointed by creditors. Compulsory liquidation is often a reactive measure, while CVL is a proactive decision by directors to address insolvency.
Can directors of an insolvent company in Acton avoid personal liability?
Directors can avoid personal liability if they have acted in accordance with their statutory duties, including not trading while insolvent and not engaging in wrongful or fraudulent trading. By seeking professional advice early and placing the company into liquidation promptly, directors can demonstrate that they acted responsibly. Our liquidators will review director conduct and provide guidance on minimising personal risk, but if wrongful trading is found, personal liability may arise.
How long does the liquidation process take in Acton?
The duration of liquidation in Acton depends on the complexity of the case. A straightforward creditors voluntary liquidation (CVL) typically takes between 6 to 12 months to complete, including the realisation of assets and final distribution to creditors. However, if there are complex asset sales, legal disputes, or investigations, the process can take longer. Our team will provide a realistic timeline based on your specific circumstances.
What happens to employees when a company goes into liquidation in Acton?
When a company enters liquidation, employees are made redundant from the date of the liquidation order or the appointment of the liquidator. The liquidator is responsible for ensuring that employees receive their statutory redundancy payments, unpaid wages, holiday pay, and other entitlements, which may be claimed from the National Insurance Fund (via the Redundancy Payments Service) if the company cannot pay. Employees are also entitled to claim for notice pay as a preferential creditor.
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