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MAKESWORTH LIMITED
Makesworth
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Frequently asked questions
What is the role of a company liquidator in Dunstable?
A company liquidator in Dunstable is a licensed insolvency practitioner who takes control of a company that is being wound up. Their primary role is to collect and realize the company's assets, settle outstanding debts with creditors in the correct legal order, and distribute any remaining funds to shareholders. They also investigate the conduct of directors and ensure that the liquidation process is carried out in compliance with the Insolvency Act 1986.
How much does it cost to appoint a liquidator for my company in Dunstable?
The cost of liquidation varies depending on the complexity of your company's affairs, the number of assets and creditors, and the type of liquidation required. For a Creditors Voluntary Liquidation (CVL), fees are often based on a fixed fee or a percentage of the assets realized. We always provide a clear, written quotation before you commit, and we can discuss funding options if the company has insufficient assets to cover the costs.
What is the difference between a Creditors Voluntary Liquidation (CVL) and a Compulsory Liquidation?
A Creditors Voluntary Liquidation (CVL) is a voluntary process initiated by the company's directors and shareholders when they believe the company is insolvent. They pass a resolution to wind up the company and appoint a liquidator. In contrast, a Compulsory Liquidation is a court-ordered process, usually initiated by a creditor who petitions the court to wind up the company due to unpaid debts. In a compulsory liquidation, the court appoints the Official Receiver initially, who may later appoint a licensed insolvency practitioner.
Can I continue to trade my company after appointing a liquidator?
No, once a liquidator is appointed, they take control of the company and its assets. The directors' powers cease, and they cannot continue to trade or make decisions on behalf of the company. However, the liquidator may continue trading for a short period if it is necessary to sell the business as a going concern or to realize assets in a beneficial way. Directors are required to cooperate fully with the liquidator and provide all relevant books and records.
What are the legal duties of directors when their company is insolvent in Dunstable?
Directors have a legal duty to act in the best interests of the company's creditors when the company is insolvent or on the verge of insolvency. This means they must avoid wrongful trading, which is continuing to trade when they know there is no reasonable prospect of avoiding liquidation. Directors must also keep proper accounting records, disclose all assets and liabilities to the liquidator, and cooperate with any investigation into the company's affairs. Failure to fulfill these duties can result in personal liability for company debts or disqualification as a director.
How long does the company liquidation process take in Dunstable?
The duration of a liquidation depends on the complexity of the case. A straightforward Creditors Voluntary Liquidation (CVL) can often be completed within 6 to 12 months, especially if the company has few assets and creditors. However, more complex cases involving asset recovery, legal disputes, or investigations can take several years. Your liquidator will provide a realistic timeline based on your specific circumstances and keep you updated throughout the process.
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