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18-May-2020 12:44

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An intrinsic part of the liquidator’s role would be to investigate all company affairs should they need to recover any of the company’s assets that have been misplaced or sold at less than market value from the company as the liquidator is at liberty to reverse these transactions."A man in the pub said I cannot be a director of any other company if I liquidate my company. As a result of this rubbish, many struggling directors worry about liquidating their company as they think it might seriously affect them personally. Listening to bar room experts, inexperienced accountants or lawyers or marketing people can stop decisions being made, this failure to make a decision is really what could land you in trouble. This nonsense just highlights that people make things up all the time about subjects they have little knowledge of.Having a limited liability company means that the directors have little risk (or limited liability) if the company fails, as long as they have acted properly and acted in time.What is more, if as a director, you have been compliant and on the payroll for many years, you can actually claim redundancy from the government like any other employee.But, and it is a big but, if you fail to act in time, fail to act reasonably, fail to keep books and records, continue taking credit KNOWING that the company cannot possibly repay it, then you ARE at risk of personal financial loss or worse such as losing your house.

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For each of the types of liquidation outlined below, there is a specific process that must be followed: Members’ voluntary liquidation In some cases, the business owner might choose to discontinue the company for a variety of reasons.

If the company is deemed insolvent any remaining assets will be sold in order to pay off any remaining creditors.



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