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Frequently asked questions
What is the difference between a CVL and an MVL in Southampton?
A Creditors Voluntary Liquidation (CVL) is used for insolvent companies where debts cannot be paid, and it protects the company from further legal action. A Members Voluntary Liquidation (MVL) is for solvent companies that wish to close voluntarily, often to extract retained profits in a tax-efficient manner. Our Southampton liquidators can advise which process is suitable based on your company's financial health.
How much does company liquidation cost in Southampton?
The cost of liquidation varies depending on the complexity of the company's affairs, the number of creditors, and the assets involved. For a standard CVL, our fees are typically fixed and range from £3,000 to £6,000 plus VAT and disbursements, but we always provide a clear quote after a free initial review. MVL fees are often lower due to the simpler process.
Can I still be a director after my company is liquidated?
Yes, you can generally continue as a director of other companies after a CVL, unless you are disqualified by the Insolvency Service due to misconduct, such as wrongful trading or fraudulent activity. Our Southampton liquidators will guide you on any potential restrictions and help you avoid actions that could lead to disqualification.
What happens to employees when a company goes into liquidation in Southampton?
When a company enters liquidation, employees are automatically made redundant from the date of the liquidation order. The liquidator will handle all redundancy payments, unpaid wages, holiday pay, and notice pay claims, which may be recoverable from the National Insurance Fund (via the Redundancy Payments Service). We ensure all employee rights are respected and claims are processed promptly.
How long does the liquidation process take in Southampton?
A Creditors Voluntary Liquidation typically takes between 6 to 12 months to complete, depending on the complexity of realising assets and resolving creditor claims. A Members Voluntary Liquidation can often be completed in 3 to 6 months. The liquidator must also hold a final meeting of creditors or members before dissolution, which adds to the timeline.
What are the duties of a director during liquidation?
Directors must cooperate fully with the liquidator, provide all company books and records, disclose all assets and liabilities, and refrain from disposing of any company property without permission. They must also attend the creditors' meeting if required and answer questions about the company's affairs. Failure to cooperate can result in personal liability or disqualification.
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