After a winding up order is made, a liquidator is appointed to try and get money back in to the company and also investigate the conduct of the directors - and bring personal claims if appropriate. We act for directors and liquidators and have fantastic skills in this area. Let us help you.
Once the winding up order is granted by a court, then the court appoints an Official Receiver over the company.
If there are very little assets in the company, then the Official Receiver may continue to oversee the case and act in the winding up until the liquidation has completed. However, if there are any assets of note to be collected in the company, it is more likely that the Official Receiver will appoint a liquidator to deal with the liquidation of the company going forward.
- in the case of a compulsory winding up, which is when a winding up petition has been presented to the court and the court has made an order for the winding up of the company, there is an automatic stay (stop) on legal proceedings against the company without the permission of the court.
- this only applies if there has been a compulsory winding up order granted by the court, and not if the company has gone into liquidation using the creditors voluntary liquidation route.
The liquidator
If a liquidator is appointed over the company, that liquidator will collect in all the assets of the company as part of the liquidation process, in order to use these to distribute to creditors and, if there is a surplus, to shareholders.
- the liquidator is a licensed insolvency practitioner who acts as an agent over the company. The directors’ role will automatically stop on liquidation, unless the liquidator says otherwise. They will act in the interest of all the creditors generally and are impartial and independent;
- the liquidator will liaise with creditors of the company in order to accept or reject proofs of debt. They collect in all the assets, and via liquidation sales will gather as much of the company’s property as possible in order to repay anyone owed by the company;
- the liquidator will deal with all issues relating to the company, such as outstanding leases, secured creditors, goods that are on the premises that are subject to retention of title clauses, the employees, a pension fund etc, and anything else that arises.
What happens after the liquidation?
Once the liquidator is confident that all the assets and the creditors have been dealt with appropriately, then they will apply to have the company dissolved at Companies House and taken off the Companies Register.
If your company is facing a winding up petition or has been threatened with a petition or has received a statutory demand from a creditor, it is vital that you speak to an expert liquidation lawyer in order to determine how to deal with your situation. Compulsory liquidation will mean the end of the company. Contact our friendly team today and we can go over your circumstances with you and discuss the best options for you.
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