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 compulsory liquidation and creditors' voluntary liquidation in Morden Surrey?
Compulsory liquidation is a court-ordered process, typically initiated by a creditor who petitions the court for a winding-up order due to an unpaid debt. Creditors' voluntary liquidation (CVL) is initiated by the company's directors and shareholders when they resolve that the company is insolvent and cannot continue. In a CVL, creditors appoint a liquidator at a meeting, whereas in compulsory liquidation, the Official Receiver or a licensed insolvency practitioner is appointed by the court.
How much does it cost to appoint a company liquidator in Morden Surrey?
The cost of liquidation in Morden Surrey varies depending on the complexity of the case, the size of the company, and the number of assets and creditors. For a straightforward creditors' voluntary liquidation, fees typically range from £3,000 to £7,000 plus VAT, but this is often covered by the realisation of company assets. Compulsory liquidation may require a deposit of £1,600 or more to cover the Official Receiver's costs. We provide a fixed-fee quote after an initial free assessment.
Can a director be held personally liable for company debts during liquidation in Morden Surrey?
Yes, in certain circumstances. Directors can be held personally liable for debts if they have acted wrongfully, such as trading while insolvent, misusing company funds, or failing to keep proper records. The liquidator has a duty to investigate director conduct and can apply to the court for a disqualification order or compensation order. However, if you have acted honestly and reasonably, your personal liability is typically limited to the value of your shares.
What happens to employees when a company goes into liquidation in Morden Surrey?
When a company enters liquidation, employees are automatically dismissed from the date the winding-up order is made or the resolution is passed. They become preferential creditors for unpaid wages, holiday pay, and pension contributions, up to statutory limits. The liquidator will assist employees in claiming redundancy pay and other entitlements from the National Insurance Fund via the Redundancy Payments Service.
How long does the liquidation process take in Morden Surrey?
The duration of liquidation varies. A simple creditors' voluntary liquidation may be completed within 6 to 12 months, including the final meeting of creditors and dissolution of the company. Compulsory liquidation can take longer, often 12 to 18 months, due to court procedures and the Official Receiver's involvement. Complex cases involving asset recovery or legal disputes can extend beyond this timeline.
Can I continue trading after my company enters liquidation in Morden Surrey?
No, once a company enters liquidation, the liquidator takes control of all company assets and operations. Trading ceases immediately, except in very limited circumstances where the liquidator may continue trading temporarily to sell stock or complete contracts for the benefit of creditors. As a director, you lose your authority to act on behalf of the company, and continuing to trade would be a criminal offence.
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