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Frequently asked questions
What is the role of a company liquidator in Horsham?
A company liquidator in Horsham is a licensed insolvency practitioner who takes control of a company that is being wound up. Their role involves collecting and realising company assets, settling outstanding debts with creditors in the correct order of priority, investigating the company's affairs, and ensuring that all legal and statutory requirements are met. They also handle communication with shareholders, employees, and other stakeholders, and they prepare final accounts for submission to Companies House. The liquidator's ultimate goal is to achieve the best possible outcome for all parties involved while ensuring the company is formally dissolved.
What is the difference between voluntary and compulsory liquidation?
Voluntary liquidation is initiated by the company's directors or shareholders, usually through a members' voluntary liquidation (MVL) for solvent companies or a creditors' voluntary liquidation (CVL) for insolvent companies. Compulsory liquidation is a court-ordered process, typically triggered by a creditor petitioning for a winding-up order when the company cannot pay its debts. In voluntary liquidation, the company chooses the liquidator, whereas in compulsory liquidation, the Official Receiver or a court-appointed liquidator takes control. The procedures, timelines, and levels of court involvement differ significantly between the two.
Can a company in Horsham continue trading during liquidation?
Once a company enters formal liquidation, the liquidator takes over control, and the directors' powers cease. The company cannot continue trading in the normal course of business. However, the liquidator may allow limited trading to complete existing contracts or sell stock in a way that maximises value for creditors. In some cases, a company may continue trading under a different arrangement, such as a company voluntary arrangement (CVA) or administration, but that is not liquidation. If you wish to continue trading, you should seek advice on alternative insolvency procedures before opting for liquidation.
What are the costs of hiring a company liquidator in Horsham?
The costs of hiring a company liquidator in Horsham vary depending on the complexity of the case, the size of the company, 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 realised, and they must be approved by creditors. For a members' voluntary liquidation (MVL), fees are typically agreed upfront and may be fixed or time-based. It is essential to obtain a detailed quote and understand what services are included. Many liquidators offer a free initial consultation to assess your situation and provide a fee estimate.
What happens to employees when a company goes into liquidation in Horsham?
When a company goes into liquidation, employees are automatically made redundant from the date the liquidation order is made or the resolution is passed. The liquidator is responsible for ensuring that employees receive their statutory redundancy pay, unpaid wages, holiday pay, and any other entitlements. Employees may be able to claim these amounts from the National Insurance Fund if the company cannot pay them. The liquidator will provide employees with the necessary forms (e.g., RP1) to make claims. Employees are also entitled to be consulted about the liquidation process, and the liquidator must inform them of their rights.
How long does the liquidation process take in Horsham?
The duration of the liquidation process in Horsham depends on the type of liquidation and the complexity of the company's affairs. A straightforward creditors' voluntary liquidation (CVL) typically takes between 6 to 12 months to complete, but more complex cases involving substantial assets, litigation, or investigations can take several years. A members' voluntary liquidation (MVL) for a solvent company may be completed in a shorter timeframe, often around 3 to 6 months. The liquidator must file final accounts and a return to Companies House, and the company is formally dissolved after that. Factors such as asset realisation and creditor claims can extend the timeline.
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