What is Company Liquidation & Is Company Liquidation Right Choice?

What is a company liquidation and how best to liquidate a company the fastest and safest way. How many ways can you liquidate a company and what are the advantages and disadvantages. What could go wrong if you take the wrong advice.

Company Liquidation Options

There are 3 common ways a company can be put in to liquidation:

First, A Compulsory Liquidation by the courts if the company owes money for goods or services received. This sort of an action can be brought about by a secured creditor or an unsecured creditor of the company.

Second, A Creditors Voluntary Liquidation is the most common form of liquidation in the United Kingdom. This is normally the case when the company has come to the end of the road or is trading insolvently due to cash flow to continue business. The main concern for the directors is wrongful trading if the company continues trading and accumulating debts when the directors know the company cannot continue in its current form with the debts.

Third, A Shareholders Voluntary Liquidation is where the company has served its purpose and has funds to pay all its creditors secured and unsecured including taxes.

So what is a liquidation of a company?

First of all we need to understand what a company is, a company is a separate entity in its own right just like the shareholder or the directors are. The directors are the officers of a company who run the company. The shareholders are the people who have taken invested money in the company and have taken shares in return. A director can also be a shareholder in the same company , this is the most common small business you find around the world.

When a company is placed in to liquidation an insolvency practitioner (liquidator) steps in to the shoes of the officers of the company to finalise the affairs of the company, i.e. sell any assets of the company if any and pay any liabilities with what dividends are left if any amongst the creditors. Once all that has been completed the company is then dissolved and removed from the Companies House Register. That’s the end of the company.

Can I liquidate my own company?

If the company has creditors with debts outstanding then you cannot liquidate the company without having to employ the services of an insolvency practitioner. It may be wise to seek the professional advice of an Insolvency Auditor for a free consultation to see the options you have open to you and to minimize and personal liabilities you as a director might have.

The insolvency auditors looks after the interests of the directors. The insolvency practitioner is bound by law to look after the interests of the creditors.

If on the other hand if the company has no debts at all then simply fill in a simple form along with a small fee to companies house and have the company removed from the register.

Can I save my company from liquidation?

If the company has creditors with debts outstanding then you cannot liquidate the company without having to employ the services of an insolvency practitioner. It may be wise to seek the professional advice of an Insolvency Auditor for a free consultation to see the options you have open to you and to minimize and personal liabilities you as a director might have. The insolvency auditors looks after the interests of the directors. The insolvency practitioner is bound by law to look after the interests of the creditors.

If on the other hand if the company has no debts at all then simply fill in a simple form along with a small fee to companies house and have the company removed from the register.

My Personal Mission To Help Company Directors and Business Owners Out Of Debts.

moe-nawaz“As a Turnaround Practitioner & Insolvency Auditor, It’s been my personal mission since 1989 to help struggling business owners succeed by eliminating or reducing their company debts. I’ve seen and dealt with every familiar and un-familiar debt situation imaginable and you can rest assured I fully understand your pain and your sleepless nights worry about your company debts. I want you Feel free to give me a call ANYTIME to discuss your company debt situation and how I can best help you to get your life and your business back to normal.”

Call me personally on 0800 24 0800 or filling in the simple form and I will call you back for a private and confidential chat.

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