Help for Directors

All businesses face the occasional financial crisis but when they become a critical problem you need to know exactly where you stand. In our help for directors section, you will find specific information for answering your questions around if you are insolvent, what you need to do if you are and how it will affect you.

Creditors Voluntary Liquidation

What is known as Creditors Voluntary Liquidation is the process that most businesses must go through if they are insolvent. It can be a difficult time for everyone involved, so we have created this special section of our site to give you the important facts about CVLs in a clear and down to earth way so you can see where you stand.

Members Voluntary Liquidation

This is when your company is still solvent, but you (and your fellow directors) decide it is time to call it a day and retire or move on to the next stage of your lives.  With an MVL, you will release the assets and use these funds to pay off the creditors before returning the remaining funds to the shareholders.

Compulsory Liquidation

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Compulsory Liquidation

What is Compulsory Liquidation?

This happens when the court orders that your company must be wound up.  This follows a winding-up petition presented by your creditors.  This will usually be one or more creditors who are owed at least £750.  In rare cases, the petition for Compulsory Liquidation might be presented by -

If you’re being threatened with a petition, you need to take urgent action. Once the petition is advertised, your bank account may be frozen. Clearly, if this happens, your business will effectively be closed.

We can still help you, even if the petition has been issued.

How do we approach our role?

As mentioned above if you are at threat of a winding-up order we may be able to help you avoid compulsory liquidation. This may be via an Administration or a Creditors Voluntary Liquidation. We can discuss your options and help you through this difficult time.

If the Company is already in compulsory liquidation then the Official Receiver is appointed as liquidator of your company.   The Official Receiver can appoint an insolvency practitioner, such as ourselves as liquidator in his place.  This might also happen if a majority of your creditors support the appointment of an insolvency practitioner. 

We would then realise your company assets, agree creditors’ claims and distribute funds by way of dividends.  We would finally produce a report on the liquidation. 

 

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If you run a business, you will be more than aware of the rising background costs. You will also be facing increases in your personal finances. Without a doubt, now is the time to maximise your resilience.

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Find out more about how we can support you when times are tough.  We’re here to help with clear, straightforward support.

Call us on 0116 2325117 (Leicester), 01926 671891 (Warwick), 02476 017639 (Coventry), 01604 263179 (Northampton) or email us on info@smartbusinessrecovery.co.uk