What is Liquidation? Overview

Direct about Company Liquidation

Liquidation is the formal legal process to end the life of a Limited Company.

A company can be placed into voluntary liquidation by the directors and shareholders.

If the company is insolvent, then there is also a meeting of creditors.

The InsolvencyDirect online Liquidation system deals with all these formalities.

Liquidation is not the end of the company; it still exists, for the moment, in a protected state, while the Liquidator deals with the winding-up of its business affairs.

As soon as a Liquidator has been appointed, the Directors duties and obligations in respect of the company are effectively taken on by the Liquidator, and the Directors are in a position to make a fresh start, in the same line of business with a new Company, or they can exit the market and move onto new opportunities.

Once the Liquidation is complete, the company is dissolved, struck off the register at Companies House, and ceases to exist.

Most small company liquidations are routine and take around 6-8 months to complete. In practical terms, after the meeting of creditors, the directors will have no further involvement with the company, unless the Liquidator requires some assistance with the winding-up.