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Frequently asked questions
What is the difference between CVL and MVL in Chinnor?
A Creditors Voluntary Liquidation (CVL) is used when a company is insolvent and cannot pay its debts, initiated by directors. A Members Voluntary Liquidation (MVL) is for solvent companies where directors can repay all debts within 12 months. Both require a licensed insolvency practitioner, but the processes and implications differ significantly.
How much does company liquidation cost in Chinnor?
Liquidation costs vary based on company size, complexity, and the type of liquidation. For a CVL, typical fees range from £3,000 to £6,000 plus VAT, often paid from company assets. MVL fees are usually fixed from £2,500. We provide transparent quotes after a free initial consultation, with no hidden charges.
Can I continue trading while my company is in liquidation?
Once a liquidation order is made, directors lose control of the company, and trading must cease immediately. The appointed liquidator takes over to wind down affairs. However, before liquidation, directors can continue trading if it helps preserve value, but they must act in the best interests of creditors.
What are the legal responsibilities of directors during liquidation?
Directors must cooperate fully with the liquidator, provide all company records, and disclose any transactions that may be considered wrongful trading or preferences. Failure to comply can lead to personal liability, disqualification, or even criminal charges. Our advisors help you understand and meet these obligations.
Can I liquidate a company with no assets in Chinnor?
Yes, it is possible to liquidate a company with no assets, but the process is more complex. Creditors must agree to the liquidation, and the liquidator's fees may need to be funded by directors or a third party. We can guide you through the options, including striking off if appropriate.
What happens to employees when a company is liquidated?
Employees are made redundant immediately upon liquidation. They may claim statutory redundancy pay, unpaid wages, and holiday pay from the National Insurance Fund via the Redundancy Payments Service. The liquidator provides necessary documentation to support their claims.
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