A liquidator is appointed when a company is placed into liquidation.
The liquidator takes control of all the company’s unsecured assets, which are sold to repay the creditors.
where it has fulfilled the purpose it initially set out to achieve) and is no longer trading, the most cost-effective and simple way forward for a director may be to apply to the Registrar to be struck off and subsequently dissolved. A process of liquidation is often necessary before a company is dissolved.
When you liquidate a company you extract its assets and use these to pay off any debts.
Directors are also required to help the liquidator locate the business records and assets, and to answer any questions about the company and its business.
It is an offence for a director to destroy, hide or remove property, records or other documents. The liquidator will also check whether the directors or shareholders owe any money to the company, and whether any offences have been committed.
Furthermore, the liquidator is appointed by the Court or the creditor.
A creditors’ voluntary liquidation takes place when the directors purposefully choose to liquidate the company.The up front cost of a typical CVL usually ranges from £3000 to £7000, depending on the insolvency practitioner’s rates and the amount of work involved.However you should be aware that if the company's assets are sufficent to meet these up front costs then the directors should not have to make a personal contribution.Trading companies are usually closed down, although sometimes they may continue to trade for a short time so the business can be sold.When the liquidation is complete, the company is removed from the Companies Office Register.