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Frequently asked questions
What is the role of a company liquidator in Steyning?
A company liquidator in Steyning is a licensed insolvency practitioner who manages the winding-up of a company's affairs. Their role includes realising assets, settling creditor claims, investigating the company's financial history, and ensuring statutory compliance. They act in the best interests of all creditors and, where necessary, investigate director conduct. The liquidator also handles employee redundancies and communicates with all parties involved in the liquidation process.
When should I consider company liquidation in Steyning?
You should consider company liquidation in Steyning when the business is insolvent, meaning it cannot pay its debts as they fall due, and there is no realistic prospect of recovery. Common triggers include persistent cash flow problems, creditor pressure, or a significant loss of a major client. If you are a director, seeking advice early can help you avoid wrongful trading claims and personal liability. Our team can assess your situation and advise on the best course of action.
What is the difference between Creditors Voluntary Liquidation (CVL) and Compulsory Liquidation?
Creditors Voluntary Liquidation (CVL) is initiated by the company's directors and shareholders, who pass a resolution to wind up the company voluntarily due to insolvency. The creditors then appoint a liquidator. Compulsory Liquidation is a court-ordered process, usually initiated by a creditor who petitions the court for a winding-up order. CVL gives directors more control and is generally less costly and disruptive than a compulsory liquidation.
Can I still trade my company if it is in liquidation?
Once a company enters liquidation, the liquidator takes control of the company's affairs. Directors no longer have the authority to trade or make decisions on behalf of the company. However, the liquidator may continue trading for a limited period to complete work in progress or sell assets as a going concern. If you are considering liquidation, it is crucial to stop trading immediately once insolvency is apparent to avoid personal liability for wrongful trading.
How much does it cost to appoint a liquidator in Steyning?
The cost of liquidation varies depending on the complexity of the case, the size of the company, and the amount of work required. In a Creditors Voluntary Liquidation (CVL), the liquidator's fees are typically paid from the company's assets, and in many cases, the director may not need to pay personally. However, if there are insufficient assets, a director may need to fund the process. We offer transparent, fixed-fee structures and will provide a clear quote before you proceed.
What are the consequences of liquidation for directors?
Liquidation can have several consequences for directors, including the loss of control over the company, potential disqualification from acting as a director for up to 15 years if found guilty of misconduct, and personal liability for certain debts if wrongful trading or fraudulent trading is proven. However, if you act honestly and seek professional advice early, you can often avoid these penalties. Our team will guide you through the process and help protect your interests.
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