Liquidation Advice

 

How will Liquidation affect you?

Liquidating your company will have an impact on several different groups of people.  For your own peace of mind, it may be worth considering how each of these will be affected by your company going into Voluntary Liquidation.

Directors. 
In most circumstances if you put your company into Voluntary Liquidation this has very little impact upon you.  There is some paperwork to do, and you will probably have to turn up to a meeting without anyone else being there, but that’s it. Putting a company into Voluntary Liquidation is an acceptable action by a Director of the company, and so has little impact on your future. 

Shareholders. 
Shareholders will lose their stake in the company when it goes into Liquidation.  Although it’s probably not worth a great deal as the company is insolvent anyway.

Employees. 
Employees are the only priority creditor. Even if the company can’t afford their redundancy, then the Government will pay them what they are owed (including up to 8 weeks of back-dated unpaid wages).

Creditors.
Creditors are paid from anything left in the pot after employees and Liquidators have been paid.  If there is anything left (and that’s a big ‘if’) they will get a dividend payment proportionate to the level of debt they have.

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Next Steps... How will your life be after Liquidation How does Liquidation actually Work How Do I Liquidate my Company