ACCOTAX - Accountants & Tax Consultants
Welcome to ACCOTAX, a firm of Chartered Accountants in London. The firm was established in 2009 and has helped thousands of businesses and individuals...See More
ACCOTAX - Accountants & Tax Consultants
Welcome to ACCOTAX, a firm of Chartered Accountants in London. The firm was established in 2009 and has helped thousands of businesses and individuals...See More
Frequently asked questions
What is the difference between a Creditors Voluntary Liquidation (CVL) and compulsory liquidation in Lutterworth?
A CVL is a voluntary process initiated by the company's directors and shareholders when the company is insolvent. The directors appoint a licensed insolvency practitioner to liquidate assets and distribute funds to creditors. Compulsory liquidation is a court-ordered process, usually initiated by a creditor who petitions the court for a winding-up order. In Lutterworth, a CVL gives directors more control and can avoid the reputational damage and restrictions of a compulsory order.
How much does a company liquidation cost in Lutterworth?
The cost of a Creditors Voluntary Liquidation (CVL) in Lutterworth typically ranges from £4,000 to £8,000 plus VAT, depending on the complexity of the company's affairs, number of creditors, and asset realisation requirements. Our fees are fixed and agreed upfront before the liquidation begins. We provide a transparent quote after a free initial consultation, with no hidden charges. In some cases, costs can be covered from the company's assets.
Can I continue trading after my company enters liquidation?
No, once a company enters liquidation (either CVL or compulsory), the directors' powers cease immediately. The appointed liquidator takes control of the company's assets and affairs. You cannot trade, sell assets, or make payments to creditors without the liquidator's permission. However, the liquidator may allow limited trading to complete existing contracts if it benefits creditors. Any unauthorised trading after liquidation could lead to personal liability.
What happens to employees if a company in Lutterworth goes into liquidation?
In a Creditors Voluntary Liquidation (CVL), all employees are automatically made redundant from the date the liquidation resolution is passed. The liquidator is responsible for claiming statutory redundancy pay, unpaid wages, holiday pay, and notice pay from the National Insurance Fund (via the Redundancy Payments Service). Employees who are retained by the liquidator to assist with asset realisation are paid from the company's assets as an expense of the liquidation.
How long does the liquidation process take in Lutterworth?
The formal liquidation process, from the initial meeting to the final meeting of creditors and dissolution of the company, typically takes between 6 and 12 months. However, complex cases with numerous assets or disputes can take longer. After the liquidator realises assets, agrees creditor claims, and distributes dividends, they submit a final report to Companies House, and the company is formally dissolved. We aim to complete straightforward CVLs within 9 months.
What are the legal obligations of directors during liquidation in Lutterworth?
Directors must cooperate fully with the liquidator, providing all company records, financial statements, and access to bank accounts. They must not hide assets, destroy documents, or prefer certain creditors over others. Directors are also required to complete a statement of affairs detailing the company's assets and liabilities. If directors have traded wrongfully or breached their fiduciary duties, they may face personal liability, disqualification, or even criminal prosecution.
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