What happens to a company after a liquidator is appointed?
Company liquidation timeline once a liquidator is appointed A liquidator will be chosen to manage the company and start the process of liquidation. The liquidator, who can be either an Official Receiver (OR) or insolvency practitioner, will gather funds to pay back creditors and shut down the company, resulting in its removal from the Companies […]
What is a Director’s Conduct Report during liquidation?
What does a director’s report during insolvency contain? Once an insolvent limited company goes into liquidation, the liquidator’s main job is to find out why it got into trouble financially. This involves examining what the directors did before the company became insolvent. The results are included in a director’s report, with suggestions about any additional […]
What are creditors’ rights in a liquidation process?
Understanding the rights of both secured and unsecured creditors when a company is liquidated In a voluntary or compulsory liquidation process, both secured and unsecured creditors possess specific entitlements. Secured creditors are prioritised for repayment over other creditor groups, following a set hierarchy. It’s commonly assumed that unsecured creditors hold limited rights in liquidation. However, […]
Who is the Official Receiver and what is their role in a liquidation process?
Who is the Official Receiver? The Official Receiver (OR) is a civil servant representing the Insolvency Service and serves as an officer of the court. Upon compulsory liquidation of a company, the Official Receiver is promptly appointed to oversee the initial liquidation stages. In certain instances, the Official Receiver may transfer the liquidation case to […]
How can I stop a compulsory liquidation?
How to stop compulsory liquidation after it has started If a creditor has filed a winding-up petition and the court has issued a winding-up order, you have seven days to halt the compulsory liquidation process. To prevent company liquidation once it’s underway, you can either settle the debt, arrange a repayment schedule, initiate a formal […]
Voluntary vs Compulsory liquidation
What is the difference between voluntary and compulsory liquidation? When it comes to company liquidation, there are two primary forms: 1.voluntary 2.compulsory Although both entail the formal closure of a limited company, they differ significantly in initiation and liquidator appointment. Adding to the complexity, there are two types of voluntary liquidation: Creditors’ Voluntary Liquidation (CVL) […]
A company which owes me money has gone into liquidation
How can I reclaim money from a liquidated company? When a company undergoes liquidation, it terminates its existence as a legal entity. Consequently, any outstanding liabilities (or debts) at the time of liquidation are dissolved along with the company. During the liquidation process, the appointed insolvency practitioner aims to maximise funds from company assets, which […]
Understanding Section 239 Preference Payments in Liquidation: Your duties as a director
What happens if you make a preference payment when your company is insolvent? A preference payment occurs when an insolvent company pays one creditor before others, giving that creditor a better financial position than they would have had otherwise. This breaches your duties as a company director, and these transactions may face challenges during the […]
The Difference Between Liquidation and Administration
How do these closure and restructuring processes differ? Though both liquidation and administration are formal insolvency procedures, the main difference lies in the administration’s aim to salvage viable aspects of the business for ongoing trade, whereas liquidation solely focuses on the orderly closure of the company. Though the administration doesn’t promise the company’s ongoing survival, […]
Intellectual property and liquidation
Are intellectual property rights sold during company insolvency? In the process of winding up a company, intellectual property like trademarks, patents, designs, copyrights, databases, and domain names are assessed and sold to generate funds for creditors. Safeguarding intellectual property during insolvency is crucial to maintain its value and enhance returns for creditors. What could […]