Le Carrousel Blog How a UK Liquidators Can Help You Close Down Your Company

How a UK Liquidators Can Help You Close Down Your Company

A uk liquidators can help you close down your company in a quick and orderly fashion. This can be done through a members’ voluntary liquidation (MVL) or creditors’ voluntary liquidation (CVL). Both require licenced insolvency practitioners to act as liquidators.

The first thing you need to do is decide that liquidation is the best option for your business. You must then call a meeting of all directors to vote on the resolution to liquidate. There is no minimum notice period for this and you can call the meeting sooner if 90 per cent of the shareholders consent to short notice.

Once you have passed the resolution to liquidate, you will need to appoint a liquidator. They will take charge of the entire liquidation process, ensuring all information is collated on assets and debts. They will also arrange meetings with creditors and prepare reports for shareholders/members and HMRC.

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Upon the completion of liquidation, any county court judgments or debt recovery pressure from HM Revenue & Customs will be lifted. However, any debts that you have personally guaranteed remain with you.

A CVL is typically chosen by a company that wants to close down its operations and distribute the assets among its shareholders. This can be a good choice for a retiring director or to streamline group structures by eliminating unwanted dormant companies. During this time, the liquidator acts in the interests of all creditors and not the directors. However, if they find any evidence of Directors’ misconduct, they are likely to report this to the Insolvency Service (subject to confidentiality considerations). This may result in a disqualification hearing for the directors concerned.

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