In essence, a company liquidation entails a liquidator (see further below) taking company assets and turning them into cash - with which any debt owed to creditors can be paid. At its end, the company is removed from the register at companies house and is considered dissolved. Company liquidation can be complex, subject to numerous laws and regulations. A licensed insolvency practitioner such as ourselves can help. Call 0121 201 1720.
There’s three types of company liquidation (winding up) with which a licensed insolvency practitioner can help directors & owners with:-
Voluntary liquidation / voluntary winding up:
- A company may choose a members' voluntary liquidation (MVL) to close or restructure if the company is solvent (can pay its debts). Termed a solvent liquidation.
- An insolvent company may enter creditors voluntary liquidation (CVL) to allow its assets to be sold and distributed to creditors.
Compulsory liquidation / compulsory winding up:
- An insolvent company is placed into liquidation via a court order and closes via a compulsory liquidation.
Please feel free to contact us for liquidation advice 0121 201 1720
Liquidation Process Overview:
A liquidator (either the official receiver (an officer of the court) or a licensed insolvency practitioner) will administer the liquidation process. During the liquidation process the liquidator will take control of the business and ensure the following:
- Company trading ceases.
- Termination or transfer of any contracts (including employee).
- Settle any legal disputes.
- Gather money owed to the company.
- Liquidate assets and repay creditors accordingly.
- Pay liquidation costs.
- Remove the company from Companies House register and dissolve the company.
- Report upon director conduct and reasons for liquidation.