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Frequently asked questions
What is the difference between a Creditors Voluntary Liquidation (CVL) and compulsory strike off in Robertsbridge?
A CVL is a voluntary process initiated by directors when a company is insolvent, requiring a shareholder resolution and a meeting of creditors. It is managed by a licensed liquidator who realises assets and distributes proceeds. Compulsory strike off is a simpler process for a solvent company that is no longer trading, where directors apply to Companies House to remove the company from the register. If the company has debts, a CVL is the appropriate route, as strike off cannot be used to avoid creditor claims.
How much does company liquidation cost in Robertsbridge?
The cost of liquidation varies depending on the complexity of the company's affairs, the number of assets, and the level of creditor involvement. For a straightforward Creditors Voluntary Liquidation, fees typically range from £3,000 to £6,000 plus VAT, but many firms offer fixed-fee packages. In Robertsbridge, we provide transparent pricing with no hidden costs, and we will give you a detailed quote after an initial free consultation. You should always compare fees and ensure the liquidator is licensed.
Can I continue trading while my company is being liquidated in Robertsbridge?
Once a Creditors Voluntary Liquidation is approved by shareholders and creditors, the liquidator takes control of the company, and directors' powers cease. You cannot continue trading in the company's name except for the purpose of a beneficial winding up, as directed by the liquidator. If you trade while insolvent and before liquidation, you risk personal liability for wrongful trading. It is essential to seek professional advice as soon as you suspect insolvency.
What are the legal responsibilities of directors during liquidation in Robertsbridge?
Directors must cooperate fully with the liquidator, providing all company records, financial statements, and explanations of transactions. They must not dispose of assets or hide debts. If directors have acted in good faith but the company failed, they will not face personal liability. However, if there is evidence of wrongful trading, fraudulent preference, or breach of fiduciary duty, the liquidator may pursue legal action. Taking early advice helps you fulfil your duties correctly.
How long does a company liquidation take in Robertsbridge?
A Creditors Voluntary Liquidation typically takes between 6 to 12 months to complete, depending on the complexity of realising assets and resolving creditor claims. The process begins with a shareholder meeting, followed by a creditor meeting within 14 days. The liquidator then realises assets, investigates the company's affairs, and distributes funds. After final accounts are filed, the company is dissolved, which can take an additional 3 months. Compulsory strike off for solvent companies is usually quicker, around 3 to 4 months.
What happens to employees when a company goes into liquidation in Robertsbridge?
When a company enters liquidation, all employees are automatically dismissed from the date of the winding-up order or resolution. The liquidator becomes responsible for ensuring employees receive their statutory entitlements, including unpaid wages, holiday pay, and redundancy pay. These claims are preferential and may be paid from the National Insurance Fund (via the Redundancy Payments Service) if the company has insufficient assets. The liquidator will provide each employee with the necessary forms (RP1, RP2) to claim.
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