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.
Voluntary liquidation / voluntary winding up:
- Members Voluntary Liquidation (MVL) : A company may choose an MVL to close or restructure if the company is solvent (can pay its debts). Termed a solvent liquidation.
- Creditors Voluntary Liquidation (CVL) : An insolvent company may enter a CVL to allow its assets to be sold and distributed to creditors.
Compulsory liquidation / compulsory winding up:
- Compulsory Liquidation (CL) : An insolvent company is placed into liquidation via a court order and closes via a CL.
Please call 0121 201 1720 to discuss a liquidation or for liquidation advice.
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.