What is Voluntary Liquidation?
A voluntary liquidation is where an insolvent company is placed into Liquidation upon the instruction of its directors as opposed to it being forced on the Company by its creditors.
If you are looking for a voluntary liquidation, you are in the right place, as Bridge Newland Limited are specialists in providing voluntary liquidations in London and throughout the country. We have a small-knit, highly qualified team, with many years of experience in assisting clients with voluntarily liquidating their Company.
Liquidating an insolvent company voluntarily (and avoiding a forced liquidation process with less control) has many benefits. For example, directors are seen to have appropriately dealt with their Companies Act obligations as a director, not to strike off a Company which has unpaid creditors. This, in turn, reduces claims against directors for wrongful trading and/or a failure to act in the best interests of the Company. Other benefits include, more control over the timing of the process and the sale of the Company’s assets, with sales and staff redundancies often being done quicker in the voluntary liquidation process allowing for quicker returns.
Should I Voluntarily Liquidate my Company?
Our staff have assisted with the liquidation of all types of businesses and by far the biggest benefit we see currently, to placing a company into liquidation voluntarily, is that the Liquidator will work better with the director/shareholders to reach commercial settlements of any monies due back to the business from them (such as overdrawn directors loan accounts, illegal dividends and preferences). We believe we offer the best outcome for directors and shareholders who have taken out monies above the level of its profits or ahead of the payment of its creditors, as our rates are lower (allowing for better returns to creditors) and due to more settlements being reached without lengthy negotiations or costly solicitors, greater numbers of reduced settlements are accepted.
Why shouldn’t I place my Company into Voluntary Liquidation?
There is only really one reason not to voluntarily liquidate your Company if it is insolvent and that is the cost as the Voluntary Liquidation process incurs a cost which is not borne by the creditors. Therefore, if the Company has no assets or debts which can be realised in order to use these realisations to settle the Liquidation fees and costs then to voluntarily liquidate, the directors would have to pay the costs of the process personally. However, our experience is that most directors consider this disadvantage is far outweighed by the speed and other benefits to voluntary Liquidation. Therefore, if you are considering liquidating your company, we are ready to take your call. Our regional offices in Rugby and London, service the whole of the country so feel free to call us for a no charge initial consultation on (freephone) 0800 612 6197.