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 South Yorkshire?
A CVL is a voluntary procedure initiated by the company's directors and shareholders when the company is insolvent. The directors pass a resolution to wind up, and a licensed insolvency practitioner is appointed as liquidator. Compulsory liquidation is a court-ordered process, usually triggered by a creditor issuing a winding-up petition. In a CVL, you retain control over the choice of liquidator, whereas in compulsory liquidation the Official Receiver is initially appointed. For most insolvent companies, a CVL is the preferred route as it is less adversarial and often results in better outcomes for creditors.
How much does company liquidation cost in South Yorkshire?
The cost of a CVL in South Yorkshire typically ranges from £3,000 to £6,000 plus VAT, depending on the complexity of the case, the number of assets, and the level of creditor involvement. Some firms offer fixed fees, but be cautious of very low quotes that may not include essential disbursements like statutory advertising, postage, or legal fees. At our practice, we provide a transparent fixed-fee quotation after a free initial review. We also confirm that directors' personal guarantees are not used to cover liquidation costs unless specifically agreed.
Can I continue trading after starting liquidation?
No, once a company enters creditors voluntary liquidation, the directors' powers cease. The appointed liquidator takes control of the company's affairs, and trading must stop immediately, except for the limited purpose of completing unfinished contracts that benefit creditors. If you wish to continue trading, you should consider alternative insolvency procedures like a company voluntary arrangement (CVA) or administration, which allow the business to operate under a restructuring plan. Our advisers can help you determine which option is viable based on your specific financial situation.
What happens to employees when a company is liquidated in South Yorkshire?
Employees are automatically made redundant when a company enters liquidation, unless the liquidator retains them temporarily to assist with asset realisation. The liquidator will provide each employee with a redundancy notice and a claim form (RP1) to submit to the Redundancy Payments Service (RPS) for statutory redundancy pay, unpaid wages, holiday pay, and notice pay. As a director, you may also be eligible for these payments if you were employed under a contract, but claims for notice pay are subject to limits. We guide you through the employee claim process to ensure all rights are protected.
Are directors personally liable for company debts after liquidation?
Generally, no. Limited liability protects directors from personal responsibility for company debts, provided they have not acted wrongfully, fraudulently, or given personal guarantees. However, if you continued trading while knowing the company was insolvent and did not take steps to minimise creditor losses, you could face a claim for wrongful trading. Similarly, fraudulent trading or misusing assets can lead to personal liability and director disqualification. Our insolvency specialists review your conduct to identify any potential risks and advise on the best course of action before you commit to liquidation.
How long does the liquidation process take in South Yorkshire?
The formal liquidation process typically takes between 6 to 12 months to complete, but the liquidator's work may extend longer if there are complex asset recoveries, legal disputes, or investigations. The first creditors' meeting is usually held within 14 days of the resolution, and the liquidator is appointed at that meeting. After that, the liquidator realises assets, agrees creditor claims, and distributes dividends. The final meeting of creditors is held to close the case, and the company is dissolved shortly after. We provide regular updates throughout, so you are never left in the dark.
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