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MAKESWORTH LIMITED
Makesworth
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BLUEBIRD ACCOUNTANCY LIMITED
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Frequently asked questions
What is the difference between a CVL and an MVL?
A Creditors' Voluntary Liquidation (CVL) is used when a company is insolvent and cannot pay its debts. An MVL (Members' Voluntary Liquidation) is used when a company is solvent and directors wish to close it voluntarily, often for tax efficiency. In a CVL, creditors control the process, while in an MVL, shareholders appoint the liquidator.
How much does it cost to liquidate a company in Tring?
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 CVL, fees typically range from £3,000 to £6,000 plus VAT. For an MVL, costs may start from £2,500. We provide a fixed-fee quote after an initial assessment.
Can I continue trading while my company is in liquidation?
No. Once a liquidation order is made or a CVL is approved, directors lose control of the company, and the liquidator takes over. Trading must cease immediately, except for limited activities that the liquidator approves to preserve asset value. Attempting to trade after liquidation can lead to personal liability.
What happens to employees when a company is liquidated?
Employees are automatically made redundant when a liquidation order is granted. The liquidator will calculate statutory redundancy payments, notice pay, and unpaid wages. These claims are preferential and are paid from available assets or through the National Insurance Fund if assets are insufficient.
Are directors personally liable for company debts after liquidation?
Generally, directors are not personally liable for company debts if they have acted properly and not engaged in wrongful trading or fraudulent activity. However, if directors have given personal guarantees, misused funds, or continued trading while insolvent, they may face personal liability or disqualification.
How long does the liquidation process take in Tring?
A CVL typically takes 6 to 12 months to complete, depending on asset realisation and creditor claims. An MVL can be completed in as little as 3 to 6 months. The liquidator must file final accounts with Companies House, and the company is formally dissolved after that.
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