Procedure for liquidating a company

If this is the first time you have considered Liquidating your business, it must feel very worrying.So many different things to consider, concern about whether you have run the company properly and still trying to deal with creditors – but hey, that’s why we exist.

It might surprise you to know that for over 75% of enquiries we receive there are better solutions to their problem than Liquidation.Sometimes these are free, easy to implement solutions, mostly they are a darn sight cheaper than formal Liquidation, in most cases we recommend Dissolution over Liquidation.These are a rule of thumb, you really do need to talk to us to make sure, but in essence Voluntary Liquidation is right if: If you feel Dissolution may be an alternative to explore then have a look at our Dissolution Section here.First things first, you’re going to need a Liquidator.Well creditors tend to be a suspicious bunch (especially when they know their about to be told they aren’t getting any money), so they want someone licensed to oversee the Liquidation process.

Whether or not you use an agent or go direct to a Liquidator is up to you.

Agents offer ‘value added’ services and decent ones can help avoid nasty issues coming up in the Liquidation, dealing with them before the actual Liquidator is involved.

The other benefit is that an agent can often see solutions that a Liquidator will be unaware of (they tend to be rather single minded).

The role of the Liquidator is actually to look after the interest of the creditors, not yours (now you see why most people prefer an agent to be involved).

Quite simply their job is to get as much money in for creditors as possible.

Some Liquidators will take this to an extreme and can be quite aggressive towards a Director about how they have run the business, most will be more pragmatic.