If your limited company does not have enough money to pay all of its debts and the business is no longer viable, you may decide with your fellow directors and shareholders that a voluntary company liquidation is the only option.
A Creditors Voluntary Liquidation (CVL) is initiated by the directors who, with shareholders, nominate an Insolvency Practitioner to wind up the insolvent company. The company creditors formally make the appointment, hence the reason it is termed a Creditors Voluntary Liquidation.
With the UK economy stagnating and business confidence stuck in the doldrums, many companies are faced with declining sales, increasing costs and deteriorating cash flow. As many struggle to cope, the trend of escalating business failures continues.
As licensed insolvency practitioners we have the expertise and experience to provide solutions and can help you through what is inevitably a difficult time. We can act as the company liquidator in a voluntary liquidation and will assist you to ensure you meet your obligations in such circumstances. We will dispose of all company assets and distribute the proceeds with creditors in accordance with their adjudicated claims and priorities.
If you're concerned about your business and are considering liquidation or just want some advice, complete our enquiry form to see how we can assist you.
Having confirmed that company liquidation this is the best course of action for you, we will help you through the process. We will find the most beneficial way of selling any assets and will distribute any surplus funds to the creditors. We will wind up all contracts and legal issues and ensure your company is taken off the register at Companies House.
Being a director of a limited company means that there is little personal risk (or limited liability) if the company fails, as long as you have acted properly, voluntary company liquidation should allow you to get on with your life and enable you to start a new business should you decide to do so. The company's failure should have little effect on you personally unless you have signed personal guarantees or indemnities to lenders. If you have then the liquidation could lead to them being called in. We can advise accordingly if this applies in your case.
We're committed to delivering the most appropriate solution. Before embarking on business recovery, we'll consider whether your company can be made viable if radically restructured and, if so, how to make this happen. If the business is viable there but you lack the desire or determination to take things forward, we can still help. Quite often we are approached to liquidate a company, but on closer inspection we can often see a solution. This could be trading out or a company voluntary arrangement.