Company Liquidation High Shields in High Shields

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 High Shields (Tyne and Wear)

Get in touch

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


Skip to

Gallery

Other locations available for company liquidation high shields
Plains Farm Stella Felling Chilton Moor Benton Grasswell Carley Hill Kingston Park Old Benwell Victoria Garesfield Kenton Bank Foot Callerton Mill Dam Lady Park Crawcrook Fordley Humbledon Ayre's Quay Springwell Rainton Bridge Denton Burn Harraton Columbia Horsley Hill Portobello Whickham Windy Nook Cleadon Park Axwell Park Harton Nook Highfield West Boldon Brenkley Arthur's Hill Crookhill Whitley Sands Greenside West Herrington Fence Houses Swalwell Howdon Wideopen Tyne Dock Grangetown West Chirton Leam Lane Bell's Close Lambton Low Moorsley Cleadon Humbledon View Philadelphia Low Southwick Broom Hill Hebburn Hall Ponds Dudley Hebburn Colliery West Holywell Palmersville Burnside Preston Rowlands Gill Stargate Boldon Colliery Campbell Park Blackfell Dinnington Seaburn Low Fell North Shields Albany East Herrington Harlow Green Gosforth Sulgrave Kibblesworth Hooker Gate Teams Walker Seaton Burn Blackhall Mill Dunston Fatfield Whitehills Fawdon Sourmilk Hill Hazlerigg Cowgate Middle Rainton Ryton Woodside East Rainton South Hylton Heaton High Moorsley Black Callerton Mount Pleasant Scotswood Sheriff Hill Concord Pelaw Old Burdon Willington Square Felling Shore Whiteleas Ryton Bill Quay Melton Park St Lawrence Hylton Red House High Dubmire Somervyl Way Shiremoor Shipcote Washington Killingworth Village Beacon Lough South Bents Allerdene Murton Colliery Row Castletown Tynemouth Mount Pleasant Hastings Hill Millfield Sunniside Willington Hebburn Row Whickham Fell Blaydon Haughs Jarrow Hebburn New Town East Boldon Point Pleasant Elswick Wrekenton Cauldwell Usworth Saltwell Old Ravensworth Rosehill Hillview Hetton-le-Hole Easington Lane West Denton Winlaton Mill Low Thornley Cullercoats Beechgrove Lyons Battle Field Burradon Middle Herrington High Spen Old Fold Kenton Bar Shiney Row Marley Pots West Harton Carr Hill Birtley Ashbrooke Derwent Haugh Willington Quay Simonside East Gateshead Pallion Bensham Cox Green Blaydon Primrose Heworth Lane Lobley Hill North Side High Heaton North Brunton Eighton Banks Teal Farm New Herrington Low Eighton Hasting Hill Camperdown Winlaton Burdon Benton Square Ford Wallsend North Hylton Fellgate Low Greenside Kenton Blaydon Burn Penshaw Paradise Witherwack Killingworth Moor St Peter's Newburn Lemington Sunniside Wardley Forest Hall Hebburn Sedgeletch Fellside Byermoor High Southwick Great Eppleton Barmston East Jarrow Woolsington Hedworth Low Walker Barlow Thorney Close New Town Marden Monkwearmouth Blakelaw Follingsby Harton Shieldfield West Jesmond Houghton-le-Spring Heworth Shore Whitburn New York Fulwell Newbottle Westoe Howdon Pans Donwell Walkergate Glebe Team Valley Farringdon Hertburn Brockley Whins St Anthony's Silksworth Coxlodge Southwick Grindon Stony Gate Benwell Newcastle Helix Walkerville Lamesley Holystone East Holywell Backworth Deptford East Denton Dunston Hill The Lawe Bishopwearmouth Hetton le Hill Gateshead Meadow Well Oxclose Hedgefield Westerhope West Monkseaton Bank Top Hetton Downs Chopwell Springwell Biddick Hall Pelaw Main Hylton Castle Byker Monkseaton Tunstall West Moor Ryhope Elemore Vale Downhill Monkton West Allotment Street Gate Holy Cross Fenham Longbenton Whitley Bay Preston Grange Brunton Park Spital Tongues Rickleton New Silksworth South Gosforth Chowdene Moorside Walbottle Callerton Lane End Killingworth Sunderland Lyndhurst High Barnes Deckham Marley Hill Brunswick Village Billy Mill Newcastle Great Park High Shields North Walbottle Friars Goose Folly Bar Moor South Shields Doxford Park Hendon Coalburns Bigges Main Earsdon Newcastle upon Tyne Town End Farm Offerton Clara Vale Jesmond Brandling Village Newbiggin Hall Estate Heworth East Howdon Washington Village Town Centre Ayton Thornhill Cresecent Throckley Pennywell South Benwell Percy Main Biddick Roker