The quick answer
Liquidation is first and foremost about filing the right pieces of paper in the right place at the right time and at Kirks Insolvency, we do all of this for you. Our aim is to take the pressure off you and help you make the right choices in what is a very stressful time.
We will contact your creditors and deal with your employees.
In more detail
THE PROCESS OF LIQUIDATING A COMPANY
Firstly we discuss your company with you and make sure liquidation is actually the right choice for you. If liquidation is the correct path then we agree with you a time and date for a deemed consent or virtual creditors meeting (and a shareholders meeting usually held half an hour before hand). The creditors’ meeting is usually held within 7 to 14 days of you instructing us.
We will then send you an engagement letter to sign and will also ask you for photographic identification and proof of your home address. We also agree a fixed fee with you to take away the uncertainty.
From there, we help you fill in all the liquidation paper work and then send it out to the creditors and shareholders by post. This may be the first they have heard of your decision to liquidate. In the hiatus period between then and the creditors meeting, we, on your behalf, answer any questions they have and encourage creditors to telephone and email us, not you.
In practical terms you may have to close your business premises as well and we can also help with that, including site clearance, security and talking to any employees and making them redundant. Employees can usually make claims from the government for unpaid wages, notice pay, redundancy and holiday pay.
Once the notices have gone out in the post for the creditors meeting we will ask you to help us gather information for us to prepare a report to creditors that is posted or emailed to them before the meeting. To do this we usually ask for:
- A list of all creditors with names, address and amounts.
- A list of employees.
- A list of any assets (we may ask an auctioneer to value them if you are uncertain).
- Details of any assets on finance or stock covered by retention of title.
- A brief business history.
- A copy of the last three years annual accounts.
- The latest management figures.
Once we have drafted the report, we send it to you for any changes and then we ask you to approve it. It then gets sent out.
THE CREDITORS AND SHAREHOLDERS MEETINGS
On the day of the creditors and shareholders meetings, by law, we ask you to attend as a director. Strictly the law states you chair the meetings, but in fact we have a checklist and go through with you that ensures everything is covered, so in fact we do most of the talking. We know this is a worrying day, so we do the most we can to take the pressure off you.
Most creditors meetings are now held by deemed consent – which means there is no actual meeting and the liquidation happens at 11.59pm on the specified day. That is unless creditors request a physical meeting.
If a creditors meeting is called then the exact number of creditors that will attend is unknown but in most cases it is only a small number of the total (if any at all). A meeting can be held by Skype or Zoom.
The creditors meeting is a forum for creditors to see the report mentioned above and have it explained to them, ask any reasonable questions and then vote on approving the creditor voluntary liquidation and who is liquidator. This usually takes up to an hour. Once the meeting is over, we ask you to stay behind to sign the resolutions placing the company into liquidation.
AFTER THE CREDITORS MEETING
Once the meetings are over we will ask for your help with minor matters, but in general, we will leave you to get on with finding a job or starting another business (sometimes the directors want to buy the assets themselves to start again and we can help with this).
Our duties then involve collecting in the assets, agreeing creditor claims and helping the employees. We also secure in all the records.
We also write a report to the Insolvency Service.
The next report to creditors is often in 12 months when we issue an annual report or close the case.
HOW TO START THE LIQUIDATION PROCESS
Please telephone us and we can then have an initial consultation (or you can email if you prefer) and we can then make sure that liquidation is actually the right process for you. We may suggest a meeting with you if easier and you are welcome to bring a friend or advisor. At this stage you are not committed to any fees or costs with us and this is all free of charge.
You are only committed to use us once you instruct us to go ahead and place the company into liquidation. Read more about the costs of liquidating a company or find out how long the liquidation process usually takes.
We have helped over 10,000 businesses steer a route through their problems. Whether you want to know more about liquidation or begin the process of liquidating your company, we can help.