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Frequently asked questions
What is the role of a company liquidator in Ealing?
A company liquidator in Ealing is a licensed insolvency practitioner who takes control of a company's affairs when it enters liquidation. Their primary role is to realise the company's assets, settle debts with creditors in the correct statutory order, investigate the directors' conduct, and ultimately dissolve the company. They also ensure compliance with the Insolvency Act 1986, handle employee claims, and communicate with HMRC and other stakeholders on behalf of the directors.
How much does company liquidation cost in Ealing?
The cost of liquidation in Ealing varies depending on the complexity of the case, the size of the company, and the number of creditors. For a straightforward Creditors' Voluntary Liquidation (CVL), fees typically range from £3,000 to £6,000 plus VAT, but these are often paid from the company's assets. We provide a fixed-fee quote before you commit, and our initial consultation is completely free. There are no hidden charges, and we explain all costs upfront.
Can I liquidate a company with no assets in Ealing?
Yes, you can liquidate a company with no assets, but the process differs. If the company has no assets to cover liquidation costs, directors may consider a Creditors' Voluntary Liquidation (CVL) if creditors agree to fund it, or more commonly, apply for a compulsory strike-off under Section 1003 of the Companies Act 2006. However, strike-off does not formally investigate director conduct, and if there are outstanding debts, creditors may object. Our Ealing liquidators can advise on the most suitable and legal route for your situation.
What is the difference between a CVL and an MVL in Ealing?
A Creditors' Voluntary Liquidation (CVL) is used for insolvent companies that cannot pay their debts. It is initiated by directors but controlled by creditors, and it protects against wrongful trading. A Members' Voluntary Liquidation (MVL) is for solvent companies, where directors swear a declaration of solvency. MVL is often used for tax-efficient distribution of retained profits as capital gains. The key difference is solvency: CVL deals with debts, while MVL distributes surplus assets to shareholders.
What are the legal duties of directors during liquidation in Ealing?
During liquidation, directors must cooperate fully with the liquidator, provide all company records and accounts, and disclose any transactions made in the two years prior to liquidation. They must not hide assets or destroy records. Directors also have a duty to avoid wrongful trading—continuing to trade while knowing the company is insolvent. Failure to comply can lead to personal liability, disqualification as a director, or even criminal prosecution. Our Ealing liquidators guide you through these duties to minimise risk.
How long does the liquidation process take in Ealing?
The duration of liquidation in Ealing depends on the complexity. A simple CVL can be completed in 6 to 12 months, including the final meeting and dissolution. An MVL is often quicker, around 3 to 6 months. However, if there are complex asset realisations, legal disputes, or investigations, it can take longer. We provide a realistic timeline after our initial review and keep you informed at every stage. Most of our Ealing clients see their company dissolved within a year.
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