FAQ’s
If you cannot find the answer to your question, or would like to discuss your situation with an adviser, contact the specialist business team today or call 075 4444 3611 .
How much does it cost to liquidate a company as I have no money?
A Liquidator’s fee comes from the sale of company assets – book debts/cash at the bank/sale of assets, etc. but if none are available it will have to be paid by the directors personally if they wish to proceed. Directors can offer to buy back the assets of the company – in such cases, a valuation will be required and a similar process to a pre-pack is followed. In some cases, it may be possible to arrange deferred payment terms for the cost of the assets.
Will I as Director be personally liable for any debt after the liquidation?
Once the company is in liquidation (usually within 4-5 weeks but can be as little as 2 weeks if justified) the director’s role as a director ends and he steps away from all liabilities unless they have been personally guaranteed.
Do all the shareholders need to agree to the Company Liquidation?
The Liquidation requires a 75% majority (measured by number of shares) present at the shareholders meeting to pass the resolution to wind up the company and therefore we need to know if there is any disagreement amongst the Shareholders.
What is a Creditors Voluntary Liquidation (CVL)?
It is an alternative to compulsory liquidation that allows the shareholders to avoid the court process and the involvement of the Official Receiver. It is usually a quicker process which is particularly important to directors if they have staff that is owed wages as they will be able to make a claim sooner than in compulsory liquidation.
What options do I have if I want to continue trading or attempt a rescue?
Administration: you can rescue the company as a going concern. The administrator will take over as manager of the company until a buyer can be found to maximise return to the creditors. In order for an administration to take place, assets need to be in excess of £20,000 to stand any chance of this being better than the option to wind the company up.
Company Voluntary Arrangement (CVA): if you want to continue trading you usually must have a monthly surplus available for creditors. Alternatively, the company may be awaiting a single event such as a property sale / re-finance or the completion of a large contract that would generate a single significant cash injection.
A benefit of the CVA is that some assets can be excluded from the arrangement. You must have 3 or more creditors and your debt level must be over £15,000.