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?
A creditors' voluntary liquidation (CVL) is initiated by the company's directors and shareholders when the company is insolvent, and it involves appointing a licensed insolvency practitioner to wind up the business. Compulsory liquidation, on the other hand, is a court-ordered process typically started by a creditor who petitions the court to force the company into liquidation. In a CVL, directors retain some control over the process and can choose the liquidator, whereas in compulsory liquidation, the Official Receiver or a court-appointed insolvency practitioner takes control.
How much does it cost to liquidate a company in South Wales?
The cost of liquidating a company in South Wales 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 (CVL), fees typically range from £4,000 to £8,000 plus VAT, but some firms offer fixed-fee packages. The liquidator's fees are usually paid from the company's assets, but if there are no assets, directors may need to fund the process personally. Always request a detailed quote and compare services before appointing a liquidator.
Can I liquidate a company with no assets or money?
Yes, you can liquidate a company with no assets or money, but the process requires funding for the liquidator's fees. If the company has no assets to cover the costs, directors may need to pay the liquidator's fees personally or seek third-party funding. In some cases, creditors may agree to fund the liquidation if they believe it will recover more money than the costs. An insolvency practitioner can assess your situation and advise on the most cost-effective way to proceed, including potentially using a 'pre-pack' sale or a streamlined CVL process.
What happens to employees when a company goes into liquidation?
When a company goes into liquidation, employees are automatically made redundant from the date the liquidation order is made or the resolution is passed. The liquidator will assess claims for unpaid wages, holiday pay, and redundancy pay. Employees may be able to claim certain statutory payments from the National Insurance Fund through the Redundancy Payments Service, including arrears of pay, holiday pay, and statutory redundancy pay. The liquidator will provide the necessary forms and guidance to help employees make their claims.
Will I be personally liable for company debts after liquidation?
In most cases, directors are not personally liable for company debts if they have acted lawfully and fulfilled their duties. However, personal liability can arise if you have given personal guarantees for business loans or credit, or if the liquidator finds evidence of wrongful trading, fraudulent trading, or misfeasance. To protect yourself, keep accurate financial records, avoid trading while insolvent, and seek professional advice as soon as financial difficulties arise. A licensed insolvency practitioner can help you understand your exposure and take steps to minimise risk.
How long does the company liquidation process take in South Wales?
The length of a company liquidation process varies, but a typical creditors' voluntary liquidation (CVL) can take between 6 to 12 months to conclude, depending on the complexity of the case. The initial meeting with creditors usually takes place within a few weeks of the resolution to liquidate. After the liquidator is appointed, they will realise assets, investigate the company's affairs, and distribute funds to creditors. The process may take longer if there are legal disputes, uncollected debts, or complex asset sales. Your liquidator will provide a timeline based on your specific circumstances.
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