You may be considering liquidation for your company. If so, with our specialist consultancy service, we can prepare you for liquidation or another alternative procedure of company demise and deal with complex matters and other issues that will require attending if you are to avoid potentially adverse claims against you personally now and at a future date. As part of the liquidation procedure the liquidator is obliged by law to file a report on your conduct as company director to the Secretary of State for Business Innovation and Skills (BIS) and present explanations for the company’s failure. This includes any serious misconduct on your part. The alternative procedure to liquidation will not include this later process.
The liquidator could require you to make a personal financial contribution into the liquidated company’s estate or to return monies or other property you may have taken from the company in the period up to and during it becoming insolvent. Should you fail to do so the liquidator or indeed another party could take misfeasance (misconduct) proceedings against you under the provisions of the Insolvency Act 1986. If successfull you could be ordered by the court to make a financial restoration into the estate of the liquidated company and or be disqualified from being a company director for a number of years. Such consequences can have a disastrous effect on you personally. The alternative procedure to liquidation will not be include this later process.
Liquidation is a serious legal process and must not be taken as routine, especially if your conduct as a company director could be called into question. You may think your conduct was lawful but you need to be sure.
During the liquidation process the liquidator has a legal duty to act in the interest of the company’s creditors only and not company directors so you cannot rely on them to advise in your best interest.
If you decide on a creditors voluntary liquidation we will advise as to what is in your best interest and help you prepare for liquidation while dealing with those difficult matters surrounding you. We will also recommend one of our commerically minded insolvency practitioners to manage this process for you.