How do I Liquidate my company Looking to close down your company? Here is a guide to the liquidation process you will need to go through.
If you have determined it is time to close your company either because it is bankrupt and cannot continue or you want to stop trading for some other reason then you will need to put the business into liquidation.
The most common form of liquidation is creditors voluntary liquidation (CVL). A creditors voluntary liquidation is used where the company is unable to pay its creditors and the company is under serious pressure. The board does not think it can be profitable or viable to continue. To undertake a CVL, the following steps will be undertaken:
Once the procedures as described above have been completed, the company will be registered as dissolved at company's house and will no longer exist.
There is of course a cost associated with liquidating a company using a creditors voluntary liquidation. For a small business, this will normally be around GBP7,000 payable to the insolvency practitioner. Ideally this fee would be funded from company cash or the sale of business assets. However, if such funds are not available, then the fee could be covered by the directors themselves.
What happens to the directors if a company is wound up?
Once a company is being wound up a Liquidator will be appointed. The liquidator will undertake an investigation into the conduct of the directors to see whether they have knowingly allowed the business to trade while insolvent thus making the creditor's position worse. If this is the case, a director may face being disqualified and held personally liable for the company's debts. As a Director we look at the options you have.What will having a County Court Judgement do to my company
If a county court judgement remains unpaid, this could lead to more serious action being taken against the business. We look at the impact and what you can do.Company debt restructure to improve cash flow
Ensuring that enough cash is available to maintain their business must be a priority for companies. Those that do it well will survive. Those that do not are likely to fall. As such identifying problems and implement solutions which may require a radical restructuring of debt must be a priority. We discuss some of the solutions available.