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Frequently asked questions
What is the difference between a Creditors' Voluntary Liquidation (CVL) and a Members' Voluntary Liquidation (MVL)?
A CVL is used for insolvent companies where directors cannot pay debts, and it is initiated by shareholders. An MVL is for solvent companies where shareholders wish to close the business voluntarily, often for retirement or restructuring, and it requires a declaration of solvency.
How long does the liquidation process take in Coulsdon?
The duration varies depending on the complexity of the company's affairs. A straightforward CVL or MVL can often be completed within 6 to 12 months, while more complex cases with significant assets or disputes may take longer.
Can I keep trading while my company is in liquidation?
No, once a liquidator is appointed, they take control of the company. Directors lose their powers to trade, and the liquidator's role is to realize assets, settle debts, and distribute any remaining funds to creditors or shareholders.
What are the legal responsibilities of directors during liquidation?
Directors must cooperate fully with the liquidator, provide all necessary company records and financial information, and avoid any actions that could be deemed wrongful trading. Failure to comply can lead to personal liability or disqualification.
Will I be personally liable for company debts if I choose liquidation?
In most cases, directors are not personally liable for company debts if they have acted properly and within the law. However, if there is evidence of fraudulent or wrongful trading, personal guarantees, or misfeasance, you could be held responsible.
How much does it cost to appoint a liquidator in Coulsdon?
The cost varies based on the size and complexity of the company. For a CVL, fees are often paid from the company's assets, but if there are no assets, directors may need to fund the process. We offer transparent pricing and a free initial consultation to discuss costs.
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