ACCOTAX - Accountants & Tax Consultants
Welcome to ACCOTAX, a firm of Chartered Accountants in London. The firm was established in 2009 and has helped thousands of businesses and individuals...See More
ACCOTAX - Accountants & Tax Consultants
Welcome to ACCOTAX, a firm of Chartered Accountants in London. The firm was established in 2009 and has helped thousands of businesses and individuals...See More
Frequently asked questions
What is the difference between a Creditors' Voluntary Liquidation and a compulsory liquidation in Ceredigion?
A Creditors' Voluntary Liquidation (CVL) is initiated by the directors when they decide the company cannot pay its debts. Directors call a shareholder meeting to pass a resolution to wind up, and then a creditors' meeting is held to appoint a liquidator. A compulsory liquidation is a court order, usually obtained by a creditor who issues a winding-up petition. In a CVL, directors retain some control over the process, whereas in compulsory liquidation, the court appoints the Official Receiver initially.
Can a company in Ceredigion continue trading while undergoing liquidation?
No, once a company enters liquidation, it must cease trading immediately, except for actions necessary to preserve assets or complete unfinished contracts that benefit creditors. The appointed liquidator takes control of the company's affairs, and directors' powers cease. If trading continues without approval, directors may be personally liable for any new debts incurred.
What are the legal duties of directors when a company is insolvent in Ceredigion?
Directors must avoid wrongful trading and act in the best interests of creditors from the moment insolvency is foreseeable. They must not take on new credit without disclosing the company's position, must maintain accurate financial records, and must call a creditors' meeting if a CVL is proposed. Failure to comply can lead to personal liability for company debts, disqualification, or even criminal prosecution.
How much does a company liquidation cost in Ceredigion?
Liquidation costs vary depending on the complexity of the case, the size of the company, and the number of assets and creditors. Typically, fees for a Creditors' Voluntary Liquidation range from £3,000 to £7,000 plus VAT and disbursements. Some liquidators offer fixed fees or payment plans. Always obtain a detailed written quote before appointing a liquidator to avoid unexpected costs.
What happens to company assets and employees during liquidation?
The liquidator takes control of all company assets, including property, equipment, and stock, and sells them to raise funds for creditors. Employees are automatically made redundant once liquidation begins, but they can claim statutory redundancy pay, unpaid wages, and holiday pay from the National Insurance Fund. The liquidator will provide employees with the necessary claim forms and guidance.
Can I be held personally liable for company debts after liquidation in Ceredigion?
Generally, limited liability protects directors from personal liability for company debts. However, personal liability can arise if you have given personal guarantees, traded wrongfully, or misused company funds. The liquidator can pursue directors for recovery of assets sold at undervalue or preferential payments made to certain creditors. Seeking early advice is essential to minimise these risks.
About Accounting Firms
AccountingFirms.co.uk is the UK's dedicated accountant comparison website, helping individuals, sole traders, landlords, startups, and SMEs instantly compare accountancy and tax fees from trusted UK accounting firms.
Find and connect with qualified accountants, tax advisers, bookkeepers, and business advisers using advanced search filters, verified profiles, and genuine reviews aggregated from Google, Trustpilot, Yelp, and other trusted platforms.
Over 26,000+ UK Accountants in One Place
Explore the UK's largest independent directory of accountants regulated by professional bodies including ICAEW, ACCA, AAT, CIMA, CIPFA, AIA, IFA, and other recognised UK accountancy bodies.
Affordable Online Accounting Services
Buy fixed-fee accounting packages online with confidence. Services are delivered by experienced UK-qualified accountants and tax advisers, covering:
A Marketplace for Accountants
For accounting firms, AccountingFirms.co.uk is more than a directory. It's a powerful lead generation platform, accountant marketplace, and business growth hub, helping practices attract new clients, increase online visibility, generate qualified leads, and win more accounting and taxation work across the UK.