Should I Liquidate?
Giving you the information so you can make that decision.
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Should I liquidate my Limited Company?
This is a question we get asked by Company Directors all the time. If you are reading this then most probably your business is unfortunately in some kind of financial difficulty. The decision to liquidate a Limited company must be made by the Directors and Shareholders. We do not make any recommendations or advise Directors to liquidate. However, a Director can only make that decision after speaking to someone who has experience and knowledge of Company liquidations and can also explain what other options may be available.
That is where we come in.
We have vast experience of the process of liquidating a company and can explain in very simple terms:-
- The advantages of liquidation
- The disadvantages of liquidation
- What you are allowed to do and what you are not allowed to do
- The implications for the Company Directors
Here are some of the most common questions we get asked by Company Directors when they are considering liquidation:-
When a company I am a director of goes into liquidation:-
- Will all of the company’s debts get written off?
- Will I be able to be a director of another company straight away?
- Will I be able to carry on in the same line of business?
- Will I be able to use a same or similar name for the new company?
- Will the new company keep the same phone number, website and email addresses of the old company?
- Will the new company be able to trade from the same premises?
- Will the new company be able to keep some of the assets of the old company?
- Will the new company be able to keep whichever staff it chooses?
- Will I be able to get my life back and start sleeping again at night?
The simple answer to all of the above is YES.
However, as with most things in life, it is not always that simple. The answer will only be Yes if you follow the correct legal procedures and processes. If you do not follow the correct legal procedures and processes then the answer to some of the above could quite easily be NO.
If, as a Director, you do not follow the correct legal procedures and processes prior to liquidating then the penalties can be very severe and could include:-
- Being disqualified from being a Director
- Heavy Fines
So, who could you approach to discuss the options when your company is in financial difficulty?
Your accountant? Yes, but if you have a good accountant they should already know your business is in some trouble and have a plan in place for you. In reality, most accountants just want to do your accounts once a year and that’s it. Also, most accountants will only see a liquidation once every couple of years so they don’t really have much experience of liquidations.
Your Bank Manager? Well, I don’t know about you but my business bank manager has never been a company Director or run a business and has certainly never gone through a liquidation process. From our experience of business people that have gone to their bank for help when they are struggling they have come out of the bank worse off and with no help at all. Banks like to lend money to businesses that are doing really well and making profit, not businesses that are on the verge of going into liquidation.
A Liquidator? A liquidator will certainly know the process very well indeed. Better than anyone. However, liquidators make a lot of money from a liquidation so asking a liquidator if he thinks you should liquidate is a bit like asking a double glazing salesman if you need new windows.
So, who do you go to and ask what your options are and how a liquidation will affect you and your business?
Simple. You ask Me!
- I have vast experience in business.
- I’ve been in business for over 25 years.
- I’ve been a Director, Sole Trader, Partner, Shareholder, Investor.
- I’ve had very successful businesses.
- I’ve had businesses that have gone into liquidation.
- I’ve been to literally hundreds of meetings and investigations with The Insolvency service, liquidators, insolvency practitioners, HMRC, lawyers and banks. Both with Directors whose business is struggling and for some of my previous businesses.
- I have a huge network of professional advisers that I know personally and can contact on your behalf for advice and guidance and introduce you to them if needed. These include, Insolvency Practitioners, Accountants, Lawyers, Tax experts, Wealthy Investors, Bank and Finance people.
- I can explain other options that may be available as well as liquidation (liquidation should be a last resort). These could include negotiating with your creditors to get you some breathing space, selling the business, raising finance, getting investment.
This is how we work:-
- Give us a call
- Telephone discussion – free of charge, without obligation and with total confidentiality.
- I’ll explain what your options are and if you wanted us to get involved any further what we can do and what our fees will be.
- I’ll leave you to sleep on it and think about what you want to do. Remember we don’t recommend or advise. The decision has to be yours.
- If you never come back to us that’s it. It has cost you nothing.
- If you would like us to assist you in any way we can then we will and before we start you will know exactly what our fees are and what we can do for you.
So, if you would like to know what options are available to you please ring us now. Please don’t leave it too late. The more time you have the more options you will have.
Please telephone us anytime on 0800 980 2662 or 0161 825 8094. Our lines are open 24/7, 365 days a year and will be answered by a human being. No queues or voicemail.