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Frequently asked questions
What does a company liquidator in Fetcham do?
A company liquidator in Fetcham is a licensed insolvency practitioner who manages the closure of a company. They take control of the company's assets, sell them to repay creditors, investigate the company's affairs, and ensure all legal and statutory requirements are met. Once the liquidation is complete, the company is formally dissolved and removed from the Companies House register.
When should I consider appointing a liquidator for my Fetcham company?
You should consider appointing a liquidator if your company is insolvent, meaning it cannot pay its debts when they fall due. Signs include creditor pressure, statutory demands, winding-up petitions, or if the company's liabilities exceed its assets. Acting early can help you avoid wrongful trading claims and give you more control over the process, such as choosing a Creditors Voluntary Liquidation (CVL) instead of a compulsory liquidation.
What is the difference between a CVL and a compulsory liquidation?
A Creditors Voluntary Liquidation (CVL) is initiated by the company's directors and shareholders when the company is insolvent. It is a voluntary process where the directors appoint a licensed liquidator, and it usually offers a smoother, more controlled outcome. Compulsory liquidation, on the other hand, is a court-ordered process, often triggered by a creditor's winding-up petition. A CVL gives you more control and can protect you from personal liability more effectively.
Can I continue trading after my Fetcham company enters liquidation?
No. Once a company enters liquidation, the liquidator takes over control of the company's affairs, and the directors' powers cease. Trading is generally not permitted unless the liquidator decides it is necessary to preserve the value of the company's assets or to complete a sale of the business as a going concern. Any trading after liquidation without the liquidator's approval could lead to personal liability for the directors.
Will I be personally liable for my company's debts if it goes into liquidation?
In most cases, directors of a limited company are not personally liable for the company's debts, as the company is a separate legal entity. However, personal liability can arise if you have given personal guarantees, acted fraudulently, or engaged in wrongful trading. A professional liquidator will assess your conduct and help you understand your position. Seeking advice early can help you avoid personal risk.
How much does it cost to appoint a company liquidator in Fetcham?
The cost of liquidation varies depending on the complexity of the case, the size of the company, and the amount of work required. For a Creditors Voluntary Liquidation (CVL), fees are often based on a fixed fee or a percentage of the assets realised. Our Fetcham liquidators provide transparent, upfront pricing and will give you a clear quote before you commit. We also offer free initial consultations to discuss your situation.
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