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This listing was generated using publicly available data to enhance visibility for businesses. If this is your business, claim your profile to update details.
Harris Rosenberg Chartered Accountants
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Frequently asked questions
What is the difference between a Creditors Voluntary Liquidation (CVL) and a compulsory liquidation in North Shields?
A Creditors Voluntary Liquidation (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 wind up the business and distribute assets to creditors. Compulsory liquidation, on the other hand, is a court-ordered process usually initiated by a creditor (such as HMRC) through a winding-up petition. In a CVL, directors retain more control over the process and timing, whereas compulsory liquidation removes control and can lead to investigation of director conduct.
How much does it cost to appoint a company liquidator in North Shields?
The cost of a Creditors Voluntary Liquidation (CVL) in North Shields typically ranges from £4,000 to £8,000 plus VAT, depending on the complexity of the case, the number of creditors, and the value of company assets. Many reputable liquidators, including our firm, offer a fixed-fee service with no hidden charges. The fee is paid from the company's assets before any distribution to creditors. If the company has no assets, directors may need to fund the liquidation personally, but this can sometimes be offset against director redundancy claims if eligible.
Can I continue trading after my company enters liquidation?
No. Once a company enters Creditors Voluntary Liquidation (CVL) or any form of compulsory liquidation, the liquidator takes control of the company's affairs. The company must cease trading immediately, and the directors' powers cease. The liquidator's role is to realise assets, investigate the company's affairs, and distribute funds to creditors. Continuing to trade after liquidation is a criminal offence and can result in personal liability for debts incurred during that period.
What are the legal responsibilities of directors when their company becomes insolvent in North Shields?
Directors have a legal duty to act in the best interests of creditors when the company is insolvent or on the verge of insolvency. This includes avoiding wrongful trading (continuing to trade while knowing there is no reasonable prospect of avoiding insolvency) and fraudulent trading (intentionally defrauding creditors). Directors must also cooperate with the liquidator, provide full company records, and attend interviews if required. Failure to comply can lead to personal liability for company debts, disqualification as a director, or even criminal prosecution.
Can I claim redundancy if my company goes into liquidation in North Shields?
Yes, if you are a director and an employee of the company under a formal employment contract, you may be able to claim statutory redundancy pay, unpaid wages, holiday pay, and notice pay from the National Insurance Fund (via the Redundancy Payments Service) after your company enters liquidation. The liquidator will provide you with form RP1 and guidance on how to claim. To qualify, you must have been employed by the company for at least two years and meet the other statutory criteria. The liquidator can confirm your eligibility and assist with the process.
What happens to company assets and debts after liquidation in North Shields?
In a Creditors Voluntary Liquidation, the appointed liquidator takes control of all company assets, including cash, property, equipment, and intellectual property. They will sell these assets to generate funds. The proceeds are then distributed to creditors in a strict statutory order: secured creditors (e.g., bank with a fixed charge) are paid first, followed by preferential creditors (e.g., employee wages up to a cap), then unsecured creditors (e.g., trade suppliers, HMRC for VAT/PAYE). Any remaining funds, if the company was solvent, are returned to shareholders. If there are insufficient assets, creditors receive a dividend based on the available funds, and the company is dissolved at the end of the process.
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