A Phoenix Company is a description often given to a new Limited Company established immediately following the liquidation of an insolvent business. It is perfectly legal to form a new company from the remnants of a failed company. The phoenix company arrangement allows a business to start again and for the profitable elements of the [...]
Yes. Directors of the insolvent company are often keen to buy back the assets of the business. The liquidator has a duty to establish the value of any company assets before agreeing a sale. So long as the transaction is carried out correctly, the Directors are free to buy back company assets and form a [...]
This will depend entirely on your circumstances. In most cases, the Directors will not need to pay liquidation costs personally. The costs of the liquidation are usually covered from the realisation of company assets. Anderson Brookes is a small insolvency practice based in Bolton, Lancashire and our operating costs are very low. We are therefore [...]
A Limited Company may be forced into liquidation by one or more of its creditors. In the event of non-payment of a debt over £750, a creditor may petition the court to have the company liquidated. The application to court is known as a Winding Up Petition. If the creditors application to court is successful, [...]
No. Only a Licensed Insolvency Practitioner can liquidate a company. A Director can apply for their company to be dissolved, directly to Companies House if they meet the relevant criteria. Please be aware... In certain circumstances, it can be deemed a criminal offence to make an application to dissolve a limited company that is insolvent. [...]
No. Only a Licensed Insolvency Practitioner can liquidate a company.
The Directors of a solvent limited company may close down their company using a Members Voluntary Liquidation (MVL). The key difference between a Members Voluntary Liquidation and other types of liquidation is that the company must be able to repay all its debts in full at the time it is liquidated. An MVL may be [...]
• Placing the company into Liquidation will stop debt enforcement including bailiff action. • The Directors usually have control over the choice of Liquidator. As the Directors instigate the CVL process, they are able to meet with the Insolvency Practitioner prior to placing the company into liquidation and make sure they are comfortable with them. [...]