Company Liquidation Shetland in Shetland

Contact Us

As scary as it may for seem for businesses, old and new, there may come a point when liquidation is the only viable option remaining. So how did you get to this point? There is a number of reasons why liquidation of a company may become a necessity, for example, it may be that your company is simply not profitable anymore – or it may be that your company has taken on too much debt and your creditors are forcing you into compulsory liquidation.

Whatever the reason, we can help guide you through the process and give you all the information you may need to get the ball rolling.

Find Out More

What Does Liquidation Mean?

So, what exactly is liquidation and what does it mean for you and your company? Well, quite simply, liquidation (sometimes known as a winding up order) is a process that sees a company brought to an end – with its assets and property then being redistributed in order to pay off its debts.

You will find three different types of liquidation, two voluntary and one compulsory, but we’ll have more on that later – however, the end goal of all three remains the same – to bring your business to an end.  If you’re unsure of what type of is suitable for your company, don’t worry, we will do all we can to help and guide you through the process.

How to Liquidate a Company

If you’re feeling a little overwhelmed and don’t know where to start, don’t worry, we can talk you through the process of liquidating a business – but here’s a brief overview.

When liquidating a company, there are generally five main steps to follow in order to complete the process. Firstly, an insolvency practitioner will be appointed as Liquidator and it is their job to oversee the whole process and ensure it runs as smoothly as possible for all involved parties.

Secondly, all of the company’s assets are then assessed and liquidated. Next, creditors will then be paid what they are owed (or an agreed upon amount) in order of priority. Then, any surplus cash remaining will then be distributed to the directors accordingly. Finally, the company is dissolved and is the struck off the registrar of companies and Companies House, meaning it will no longer be able to operate or trade.

Contact Our Team

Types of Liquidation

There are currently three types of liquidation available to companies – two voluntary processes and one compulsory process.

·         Firstly, there is the voluntary liquidation of an insolvent limited company. This type involves the dissolution of the business and sees it assets redistributed to its creditors. This is generally seen as a last resort for companies, but it can also be a rational decision that may not necessarily mean the end of the business, as it enables directors to write off unsecured debts that have not be guaranteed personally.

·         The second form of voluntary liquidation is that of a solvent limited company. Otherwise known as a Member’s Voluntary Liquidation (MVL), this is generally considered the fitting way to liquidate a company and can even be used as part of an exit strategy. Reasons for considering an MVL may be that you are looking to reduce taxation by closing your company as part of a business plan, or your business may simply be coming to an end naturally. You must consider, however, that to be eligible for an MVL, a declaration must be signed confirming that there are no remaining creditors (including HMRC).

·         Finally, there is compulsory liquidation of a company. This is considered the most severe of all three types – as it is usually initiated by a creditor that is aiming to force to company to liquidate, usually in the form of a court order. It’s safe to say, you may not be too happy with your business being forced into closure, but do bear in mind, this is generally a last resort by creditors, probably after several unsuccessful negotiations over missed payments etc.

If you do find yourself in this situation, do be aware that your conduct during this process will be reported to the Secretary of State at the end of proceedings and if you have failed to cooperate, there may be some pretty serious consequences.

Liquidation Process UK

Here in the UK, there are several things that need to be considered before the liquidation process can even begin. For example, directors must meet to pass a resolution to convene a general meeting for liquidating the company, per the Companies Act 2006.

When the meeting is agreed, all creditors must be notified at least seven days before said meeting is due to take place and an advert must be placed in The Gazette within 14 days. A statement of affairs must then be drawn up by the directors, to prevent at the meeting. After the meeting has taken place, one director must then be chosen to formally represent the group at the meeting with the creditors.

You may be wondering how long the UK liquidation process will take, in regards to winding up your business. But, the truth is, there is no accurate answer for this, as each case is unique and it generally depends on the size and complexity of the business – as well as its debts, assets and property.

It’s also worth noting that if you were the director of a company in compulsory liquidation or creditors voluntary liquidation, you will be banned from forming, managing or even promoting a business that has the same name, or a similar name to your liquidated business – unless you have been granted permission to do so by the court.

Find Out More

We appreciate that all of the above may seem like a lot to digest, at an already stressful time if you are going through, or considering going through liquidation of a company, be it voluntary or involuntary. However, you can rest assured that the insolvency services we offer are here to help and assist you in getting the best possible outcome for yourself and your business.  

Get In Touch

We cover Shetland

Get in touch

We aim to get back to you in 1 working day.


Skip to

Gallery

Other locations available for company liquidation shetland
Sullom Hestaford Colvister Ramah Bridge of Walls Houbie Cuckron Collafirth Clousta Boddam Lunna Gletness Browland Clivocast Lunning Grimister Hamnavoe Assater Semblister Easter Skeld Noss Fladdabister Barnafield Valsgarth Hellister Railsbrough Hogaland Brae Tresta Brake Gunnista Quhamm Quendale Ringasta Freefield Bridge End Mangaster West Sandwick Walls Gruting Bruray Dury West Yell Gord Westing Flanderstown Brough East Houlland Quoys Voesgarth Freester Kirkabister Brettabister Catfirth Nibon Grindiscol Leebitten West Houlland Vanlop Windhouse Veensgarth Breiwick South Aywick Scarff Levaneap Dale of Walls Burwick Mid Yell Innbanks Houlland Channerwick Bigton Voxter Vatsetter Tulkie Duncansclett Braehoulland Funzie Scatsta Ayres of Selivoe Swinister Symbister Gloup South Nesting Upper Neapaback Mossbank Sellafirth Cunnister Tumblin Omunsgarth Wethersta Rerwick Scarvister Laxobigging Harrier Sandvoe Lea Gardens Gardie Stanydale Ure Cauldhame Mailand Exnaboe Wester Quarff Gillarona Upper Neepaback Fogrigarth Hoswick Girlsta Hillswick Lunnister Northdale Laxo Sandwick Huxter Urafirth Vats-houll Grunasound Quoys of Catfirth Skaw Garth Haggrister Flugarth Caldback Burragarth Setter Busta Easter Quarff Engamoor Da Hametoon Culswick Uyeasound Sound South-haa Reawick Grutness Firth Stonybreck Housay Gunnister Burrastow Skelberry Stove Bixter Harkland Sefster Eastshore Tangwick Trondavoe Mid Walls Raga Burrafirth Mail The Houllands Cannygates Maywick Greenmow Crooksetter Burravoe Freefield Kalliness Flukes Hole Ollaberry Unifirth Benston Swarister Bothen Littlester Holmsgarth Burraland Lowersound Sumburgh Ulsta Bremirehoull Vassa North Gluss Wadbister West Heogaland Basta Muness Wester Skeld Marrister Hamars Upper Urafirth Moarfield Williamsetter Grobsness South Gluss Heglibister Garderhouse North Sandwick Haa of Houlland Bardister Port Arthur Isbister Heogan Toab Kettlester Leeans Scousburgh Housetter Hillwell Kellister Da Toon o Ham Underhoull Da Nort Toons Upperdale Haggersta Upper Kergord Lunnasting Runn Gardin Billister Mid Ho Gulberwick Twatt Gossabrough Northpunds Melby Sandsound Bird Obsy Vementry Eswick Noonsbrough Sandness Cullivoe Gremista North Collafirth Silwick Skeggie Baliasta Bousta Camb North Town North Roe North Aywick Papil Clibberswick Effirth Braewick Cova Ocraquoy Biggings Ordale Gutcher Herra Punds Creediknowe Uppersound Housabister Hestingott Laxfirth Scatness Crawton Uradale South Stromness Voe Cumlewick Ireland Nisthouse Scalloway Houss Brindister Westerwick Norwick Gillsbreck Brunatwatt Beosetter Stonybrake Stromfirth Weisdale Clate Kirkaton Aywick Wick Hestinsetter Kirkidale Garthspool Graven Ramnageo Troswickness Haroldswick South Scousburgh Southpunds Lerwick Saltness Booth of Toft Skellister White Ness Hamar Midbrake East Burrafirth Hamister Swining Cunningsburgh Baltasound Stonganess Cott Gonfirth Neap Burnside Sella Ness Stenswall Norby Toogs West Burrafirth Gott Vidlin Upperton Heylor Tirvister Levenwick Otterswick Aith Copister Challister Aithsetter