There are three types of liquidation, all of which involve “winding up the company”. Compulsory liquidations and creditors voluntary liquidations are for insolvent companies, and members’ voluntary liquidation for solvent companies.
In this procedure the liquidation decision is made by the Court following a petition presented by either the directors/shareholders or creditors owed £750 or more. There is no turning back, all the company’s assets have to be realised to make a distribution to creditors providing all the liquidation costs have been met.
The case would be handled initially by the Official Receiver’s Office and in appropriate circumstances can be handed on to an independent Insolvency Practitioner, such as Bishop Fleming offers.
This Court route can be avoided by instigating a Creditors Voluntary Liquidation (see next tab) but not if you leave it too late!
If a creditor is threatening liquidation talk to us now.
Voluntary liquidation is started by the Directors of an insolvent company in co-operation with the Shareholders. An independent Insolvency Practitioner is appointed to wind up the affairs of the company, realising all assets with the intention of providing some recovery to the creditors.
The creditors have a right to control who is appointed liquidator.
We have vast experience in this area including the ability to consider all options with the company officers before resorting to this terminal procedure.
If you want to close a company or LLP partnership that’s still solvent, perhaps because you’re retiring or want to release company’s property, we can help with a Members’ Voluntary Liquidation (MVL). Bishop Fleming can arrange for shareholders to extract value in a tax-efficient manner, meaning you get the most out of your business.
If your employer is unable to pay its debts, including your wages, it is likely to be insolvent. Your options depend on whether your company has entered a formal insolvency procedure. Sam Hawkins explains. This advice assumes that they have, but if not you should contact Citizens Advice or ACAS in the first instance for […]
HM Revenue & Customs (HMRC) now require statutory interest on corporation tax (CT) where it is paid after the normal due date, which has significant implications for current and future Members’ Voluntary Liquidations (MVLs). HMRC require the payment of statutory interest at 8% from the commencement of a liquidation on any CT that falls due […]