Cookies on GOV. UK We use some essential cookies to make this website work. Accept additional cookies Reject additional cookies View cookies. Hide this message. Home Business and self-employed Selling your business and closing down. Liquidate your limited company. Print entire guide.
A creditor who wishes to appoint a reviewing liquidator must get written consent from the registered liquidator confirming they would be prepared to act as reviewing liquidator. The person must also make a written declaration about any relationships they or their firm have that might affect their independence to act as reviewing liquidator.
A creditor who wishes to appoint a replacement liquidator must request the current liquidator to convene a meeting. The liquidator is not required to comply if the request is not reasonable.
A creditor who wishes to remove the current liquidator and appoint a replacement liquidator must approach a registered liquidator to get a written consent confirming they would be prepared to act as liquidator of the company. The person must also make a written declaration about any relationships they or their firm may have that might affect their independence to act as liquidator.
If the resolution to remove the current liquidator is passed at the meeting, the removal takes effect from when a resolution to appoint the replacement liquidator is passed. The court has the power to make orders as it thinks fit in relation to an external administration. Creditors and other persons with a financial interest in the external administration can apply to the court for these orders, including:.
Making an application to court can be costly. You can consider going to court if you cannot resolve any problems with the liquidator directly. Liquidators, ASIC and other people can also make applications to the court.
For example, a liquidator might apply to have questions decided about how to exercise certain powers in a liquidation. If a company fails to meet its obligations under a security interest e.
The secured creditor can participate in any dividend to unsecured creditors for their shortfall. Directors cannot use their powers after a liquidator has been appointed. They have an obligation to assist the liquidator by:. A liquidator has the power to apply to the court to conduct a public examination , under oath, of a director or other person with information about the company.
If the company has traded while insolvent, ASIC, a liquidator or, in certain circumstances, a creditor can commence proceedings against directors personally for amounts lost by creditors. Where the directors believe that the company is eligible for the simplified liquidation process, the directors must, within five business days after liquidation commences, give to the liquidator:.
Contact the liquidator to raise any questions or complaints. Reports of misconduct against companies and their officers can also be made to ASIC. Please note that this information sheet is a summary giving you basic information about a particular topic. It does not cover the whole of the relevant law regarding that topic, and it is not a substitute for professional advice. You should also note that because this information sheet avoids legal language wherever possible, it might include some generalisations about the application of the law.
Some provisions of the law referred to have exceptions or important qualifications. In most cases your particular circumstances must be taken into account when determining how the law applies to you.
View all registers. Liquidation: A guide for creditors Receivership: A guide for creditors Voluntary administration: A guide for creditors Independence of external administrators: A guide for creditors Approving fees: A guide for creditors Deed of company arrangement for creditors.
ASIC Connect. Companies and organisations Business names Professional registers Banned and disqualified View all registers. Pay now - business name renewals. Some of the things you can do online: Renew business name Add business partner Change business address.
Some of the things you can do online: Update details Check account balance Submit financial reports. Some of the things you can do online: Update details Submit financial reports Download statements. Some of the things you can do online: Update details Submit statements Apply for, vary, or cancel a registration. Some of the things you can do online: Appoint representatives Revoke representatives Update details.
Some of the things you can do online: Submit forms. Some of the things you can do online: Register a short seller Register a submitting entity. Some of the things you can do online: Update licence details Appoint an auditor Submit reports.
Some of the things you can do online: Submit statements Submit reports Update details. Some of the things you can do online: Submit applications and notifications Submit enquiries Respond to notices. Some of the things you can do online: Submit offer summary. How can we help you? If your company is insolvent cannot pay its debts when they fall due , there are two liquidation processes; voluntary CVL, or Creditors Voluntary Liquidation and compulsory initiated via Winding up Proceedings.
Compulsory liquidations are in the vast majority of cases forced by creditors, they will go to court and ask for it to be wound up — if a Winding up Order has been issued against your company, you will not have a choice in the matter without taking quick action. The closure of the company will be the result of either process; ceasing to trade, redundancy payments for any eligible employees and directors, and sale of any assets will be appropriate in either case.
In the vast majority of cases, if it has got to the point at which a Winding up Petition has been threatened, the company needs to close.
Our advice is always to beat the creditors to it to avoid personal liability and leave your options open. First, several bits of company information will need to be provided to the practitioner. On the same date, creditors can attend a separate meeting to approve the choice of practitioner and the decision to place the company into liquidation.
A half an hour gap between these two meetings is sufficient. It is now possible for liquidators to assume that creditors consent to the liquidation, unless they have objected to the process. See our blog post on the recent changes here.
Creditors meetings can now be done virtually via video conferencing. A physical meeting can be requested under certain circumstances. Alan has been a qualified chartered accountant for almost 40 years, and has been a fellow of R3 the Association of Business Recovery Professionals since If you need help understanding the best way forward for your company, use the live chat during working hours, or call us on Table of Contents.
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