How to liquidate a company when in a franchise/How to get out of a franchise
Liquidation advice for franchisees and how to terminate a franchise agreement If you decide to wind up a company within a franchise due to insolvency, the franchisor might end the franchise agreement, considering it as an unsecured creditor. Alternatively, you could opt to leave the franchise agreement, but there may be restrictions on how you […]
How much does it cost to close or liquidate a limited company?
How much does it cost to liquidate a company? The average cost for winding up an insolvent company through a Creditors’ Voluntary Liquidation (CVL) differs depending on the company’s specific circumstances. Typically it falls between £4,000-£6,000 as a rough estimate. In case the company is insolvent, you have the option to shut it down through […]
Liquidation: How this affects employees
What happens to employees when a company is liquidated? When a company goes into liquidation, all workers will lose their jobs as the company closes down. This happens because liquidation ends the company’s legal existence, so all business activities must halt. However, if the company becomes insolvent and goes into administration, the situation changes for […]
What does folding a business mean?
What does it mean to fold a business? Folding a business is a primary term meaning the company will shut down, either by liquidation or applying for dissolution at Companies House. ‘Folding’ a company is often used when it’s insolvent and directors have no other option but to cease operations permanently. Folding a business is […]
Liquidation Options for a Limited Liability Partnership (LLP)
What is a limited liability partnership actually? A limited liability partnership – or LLP – is a business setup in which each partner’s responsibility for company debts is restricted to the sum they invest in the business. LLPs benefit from limited liability, ensuring individual partners cannot be personally pursued for company debts beyond the investment […]
Director disputes – when one wants to liquidate and one doesn’t – what next?
Solving director disputes: Liquidation When 50/50 directors disagree on liquidating their company, one party might need to think about purchasing the other partner’s share in the business. Alternatively, they could apply for special reasons to wind up the company. How to resolve director disputes when a company is insolvent? When collaborating closely with another […]
Understanding Compulsory Liquidation for a Limited Company
What is Compulsory Liquidation? A Guide for Company Directors Compulsory liquidation (WUC) is a formal insolvency procedure that leads to the forced closure of a company. Typically, this process begins when dissatisfied or unpaid creditors of a limited company file a court order known as a Winding Up Petition (WUP). This petition alerts the company […]
How to test whether your company is solvent – the balance sheet test
What is Balance Sheet Insolvency? A complete guide for company directors Suppose your company seems to be nearing insolvency. In that case, it’s crucial not only to focus on cash flow but also to scrutinise the numbers on your balance sheet for a clear understanding of your situation. While negative cash flow and delays in […]
What is a Relevant Insolvency Proceeding?
What type of insolvency procedures are deemed Relevant Insolvency Proceedings? An insolvency proceeding is a formal process overseen by an insolvency practitioner (IP) aimed at either rescuing a business or winding it down most fairly and efficiently achievable. A ‘relevant’ insolvency proceeding aims to enable a recovery, allowing the business to continue operating as a […]
When is the right time to tell staff your company is insolvent?
When to tell staff your company is insolvent? If your company is on the path to insolvency, one of your primary concerns may revolve around the implications for your employees. If your company’s financial difficulties persist, you might need to contemplate the possibility of permanently closing your company, leaving your staff without employment. Delivering this […]