Hi, I’m Ben Robson from Bridge Newland Business Recovery & Insolvency. I’m a Licensed Insolvency Practitioner and
I’m here to talk to you today about Company Liquidations A Company Liquidation is also known by the name of a Creditors Voluntary Liquidation. It’s a voluntary process for directors to
close down their insolvent business (so that means that it can’t afford to pay all of its
debts as and when they fall due). It’s quite a simple process and fairly cheap
in comparison to other insolvency processes. You need to sign a set of notices which invite the members and the creditors to attend meetings where you present information on the assets and liabilities of the Company (referred to as the Statement of Affairs). Providing the proposals presented at the meetings
are not opposed by the creditors, the meeting date is when the Company formally goes into
Liquidation and you should have ceased to trade the Company by that point. The advantages to the process are the ease
in which you can get the Company into Liquidation and also the cost because the alternative,and
Administration, is usually are quite expensive in comparison to Liquidation. The disadvantages are, because it is an insolvency
process (where every creditor can’t be repaid in full) the Liquidator is required to submit
a report on the conduct of the directors. However, providing the director’s haven’t
been fraudulent with their actions, with a specific intend to defraud creditors, the
directors will usually be able to continue to be a director of a limited company going
forward. The most common liquidation process is a phoenix
liquidation where we would help get the director’s set up again and they buy back all the assets
that they wish to take on (to be able to trade a similar business going forward) because
often the reasons for a company going into liquidation is, through no fault of the directors,
it might be a bad debt, or a loss of a contract which can’t be planned for. We do have a lot of detailed guides on our
website. We also have a flow diagram which explains the step by step process of getting
a company into liquidation. However, what you have to bear in mind is that the liquidator’s
duty is to maximise the realisations, so if there any assets remaining or any debtors
due in to the Company at the point in which it goes into liquidation then he has to sell
those assets and collect in those debts to be able to use that money to pay off the creditors
as much as possible. A company can be placed into liquidation in
as little as 7 days. The liquidation can then be concluded very
quickly after that but typically within no more than 12 months. If you feel that this situation applies to
you or if you require some more information our number is 0800 612 6197, or our website
is www.bridgenewland.co.uk. I’m Ben Robson from Bridge Newland Business
Recovery & Insolvency