ACCOTAX - Accountants & Tax Consultants
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OVAL ACCOUNTANTS LTD
Your Bookkeeping, Accounting And Self Assessment Experts, Here To Bring You The Highest Standard Of Service.
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Owadally & Kings Partnership
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Cruse + Burke
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Frequently asked questions
What are the main types of company liquidation available in East Grinstead?
The main types are Creditors Voluntary Liquidation (CVL) for insolvent companies, Members Voluntary Liquidation (MVL) for solvent companies, and compulsory liquidation which is court-ordered. CVL is initiated by directors and shareholders, while MVL is used when directors wish to close a solvent business and distribute assets tax-efficiently. Compulsory liquidation typically follows a winding-up petition from creditors.
How much does company liquidation cost in East Grinstead?
Costs vary based on company complexity, asset value, and creditor numbers. Typically, a CVL costs between £4,000 and £8,000 plus VAT, with fees often covered by company assets. MVL costs are usually lower, ranging from £2,500 to £5,000. Our firm provides a fixed-fee quote after a free initial assessment, with no hidden charges.
Can I continue trading while my company is in liquidation?
No, once a liquidation order is made, trading must cease immediately. The appointed liquidator takes control of the company's affairs, and directors lose their powers. However, in some cases, the liquidator may continue trading for a short period to complete contracts or sell assets at a better value, but this is at their discretion.
What is the role of a liquidator in East Grinstead?
A liquidator is a licensed insolvency practitioner who takes legal control of the company, realises its assets, investigates its affairs, settles creditor claims, and distributes any remaining funds. They also ensure compliance with statutory requirements, report on director conduct, and handle employee claims. Their primary duty is to maximise returns for creditors while acting in accordance with insolvency law.
What are the consequences of liquidation for company directors?
Directors must cooperate fully with the liquidator. If they have acted improperly, they may face personal liability for company debts, disqualification from being a director for up to 15 years, or even criminal prosecution. However, if directors have acted responsibly, they can usually move on to new ventures. Our advisors help directors understand their duties and mitigate risks.
How long does the liquidation process take in East Grinstead?
A Creditors Voluntary Liquidation typically completes within 6 to 12 months, depending on asset realisation and creditor claims. Members Voluntary Liquidation can be faster, often 3 to 6 months. Compulsory liquidation may take longer due to court processes. The liquidator provides regular updates throughout the process.
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