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 Creditors Voluntary Liquidation (CVL) and compulsory liquidation in River Tyne?
A Creditors Voluntary Liquidation (CVL) is a voluntary process initiated by the company's directors and shareholders when the company is insolvent. It is the most common route for closing an insolvent company and allows directors to maintain control over the appointment of the liquidator. Compulsory liquidation, on the other hand, is a court-ordered process, usually initiated by a creditor who issues a winding-up petition against the company. In compulsory liquidation, the court appoints the Official Receiver, and directors lose control over the process. Our team at Company Liquidators River Tyne can advise on which route is appropriate for your specific circumstances.
Can I continue to trade my company while it is in liquidation in River Tyne?
No, once a company enters liquidation, whether voluntary or compulsory, the appointed liquidator takes control of the company's affairs. Trading must cease immediately upon the liquidation order or the resolution for voluntary winding up, unless the liquidator specifically authorises continued trading for the purpose of realising assets or completing contracts. Trading without authorisation during liquidation can lead to personal liability for the directors. If you believe your company may still be viable, we strongly recommend seeking advice before any formal insolvency proceedings begin, as alternative rescue options such as administration or a Company Voluntary Arrangement (CVA) may allow trading to continue.
What are the legal responsibilities of directors during a liquidation process in River Tyne?
Directors have a statutory duty to act in the best interests of creditors once the company becomes insolvent. During liquidation, you must cooperate fully with the liquidator, providing all company books, records, and financial information. You must also complete a Statement of Affairs detailing the company's assets and liabilities. Directors must not take any action that could be deemed wrongful trading, such as incurring further credit while knowing the company cannot pay its debts. Failure to cooperate or evidence of misconduct can lead to personal liability, disqualification as a director, or even criminal prosecution. Our insolvency practitioners provide guidance to ensure you meet all your legal obligations correctly.
How much does it cost to appoint a company liquidator in River Tyne?
The cost of liquidation varies depending on the complexity of the case, the size of the company, and the value of its assets. For a Creditors Voluntary Liquidation (CVL), fees are typically paid from the company's assets, but if there are insufficient assets, directors may need to fund the process personally. At Company Liquidators River Tyne, we offer fixed-fee packages with transparent pricing and no hidden charges. We provide a free initial consultation to assess your situation and give you an accurate quotation before you commit to any action. Our fees are competitive within the North East market, and we ensure you understand all costs upfront.
What happens to employees of a company that goes into liquidation in River Tyne?
When a company enters liquidation, all employees are automatically dismissed from their roles. The liquidator takes responsibility for settling employee claims, including unpaid wages, holiday pay, and redundancy pay. Employees may be able to claim certain statutory payments from the National Insurance Fund (via the Redundancy Payments Service) if the company cannot pay these amounts. The liquidator will provide employees with the necessary forms (RP1, RP2, and RP3) to make these claims. We ensure that all employee entitlements are calculated correctly and that staff are treated fairly throughout the process. If you are an employee facing redundancy due to liquidation, we can also signpost you to appropriate support services.
Is it possible to rescue a company in financial distress in River Tyne instead of liquidating it?
Yes, liquidation is not always the only option. If your company is in financial distress but has a viable underlying business, alternatives such as a Company Voluntary Arrangement (CVA), administration, or informal restructuring may be available. A CVA allows you to repay creditors over a fixed period while retaining control of the company. Administration provides a moratorium from creditor action while an administrator attempts to rescue the business as a going concern. We assess every case individually, and if a rescue is possible, we will advise you on the most suitable route. Early intervention is critical; the sooner you seek professional advice, the more options you will have.
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