What Is A Section 110 Scheme Of Arrangement?
The quick answer This is a solvent liquidation process that allows you to reorganise a company into two or more new companies in order to allow the trade to be split or the ownership of the shares to be split. It is often used to split up inherited family companies (and these are often farming […]
What Is A Creditors Voluntary Liquidation?
The quick answer A Creditors Voluntary Liquidation (also known as a CVL) is where a business closes due to insolvency and goes into Liquidation. This usually happens because the company is loss making and can no longer be made profitable or the owner does not wish to continue trading. Directors (or partners in an LLP) […]
What Does Liquidation Mean For My Business?
The quick answer If a business goes into liquidation it means: The business stops trading with immediate effect. The employees are all made redundant. The assets of the business will be sold to pay creditors. In order to liquidate a company, a Licensed Insolvency Practitioner like us will be required. It usually takes around ten […]
What Does Liquidation Mean For Directors?
The quick answer When a company goes into liquidation the directors’ powers immediately cease. From this point onward directors can no longer make payments, order or sell goods, sell assets or issue orders to any employees. They will also no longer be paid but they still have a legal duty to assist the liquidator. In […]
What Does A Liquidator Do?
The quick answer A liquidator takes control of a company when it can no longer pay its debts in full. The liquidator will close premises, help staff make redundancy claims and sell or collect in the assets. They will then agree creditors claims including banks, suppliers and HM Revenue and Customs. This is so a […]
Liquidation And Capital Gains Tax – Rules For Directors
The quick answer The primary rule is that capital gains tax is still due on the gain in selling an asset even if sold by the liquidator. It is an expense of the liquidation and paid in priority to any creditor claims. In more detail An Example Of How This Works The most common asset […]
What Are The Costs Of Closing A Limited Company?
The quick answer Typically, the total cost of closing a limited company that is insolvent is £5,000 plus vat. This is only an approximate guide. If the company is solvent then it will usually be cheaper and cost from £2,000 upwards as it is simpler to deal with. We can give an exact quote and […]
Company Liquidation
Liquidation is the process of closing a business and selling the assets of the company to pay back its debts (called creditors). Company liquidation can take a varying amount of time to achieve.
Liquidation Advice – What Directors Need To Know?
The quick answer When seeking liquidation advice you should contact a Licensed Insolvency Practitioner like us. Only they are qualified to liquidate a company. The process of putting a company into liquidation takes about two weeks. It will mean the company ceases to trade and any business premises will be closed. All employees will be […]
How Long Is The Liquidation Process?
The quick answer In most cases a liquidation lasts just one year. However, the liquidation process can last longer for more complex cases. It depends on how long it takes to realise assets such as freehold property and other assets such as legal claims which may take some years to get to Court. In the […]
