What is a Directors Liquidation?
What is a directors liquidation when it comes to insolvency proceedings of a company which might be insolvent and what the directors can do about it? If a company is insolvent and continues to trade then the directors could be held liable for wrongful trading.
So what remedy do directors have to call a directors liquidation of a company. As a director of a company if you feel or know the company is insolvent and cannot pay its debts then you need to stop trading and seek the advice of a good Insolvency Auditor to help you to cease trading and to help you find optional ways of avoiding any further liabilities in the event of wrongful trading. The insolvency auditor will explain the best course of action needed to do a directors liquidation of your company whilst minimizing your liabilities and exposure from future liabilities as well.
What is the main difference between a directors liquidation and a compulsory liquidation? The directors liquidation is a voluntary liquidation by you and the compulsory liquidation which is a court lead liquidation ordered by a creditor or creditors of the company.
Depending on the amount of debts the company has, you might have a number of options open to you provided you feel the company has a viable business but for the debts. You have the options of a CVA, pre-pack administration, voluntary liquidation, a company administration order or just simply liquidate the company and walk away with minimal liabilities.
If you can gather some information about the company the number of creditors and the amounts outstanding along with what the company is owed from customers (if anything) and what assets the company has. Then simply give me a call on 0800 24 0800 we can probably run through a few options which might be open to you regarding a directors liquidation of your company.
On the other hand if the company has no debts then simply go to companies house and ask them to remove your company from the register, there is a small fee of about £10 to companies house. But this is only if the company has no debts otherwise you will have seek the advice of an insolvency auditor to guide you through the various option open to you for a directors liquidation of your company.