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The answer to the question Can I Liquidate My Company Myself, is no you cannot. All Liquidations have to be undertaken by a Licensed Insolvency Practitioner or government official, known as the Official Receiver. There is no such thing as a DIY liquidation.

Can I Liquidate My Company Myself

Can I Liquidate My Company Myself And Be The Liquidator?

No. A Liquidator needs to be independent and must not have been involved with the company that needs to be liquidated within the last 3 years in any capacity.

A Licensed Insolvency Practitioner has a duty to act in accordance with the Code of Ethics which demands the highest standards of conduct from someone who is a Liquidator and who must act in the best interests of not only the creditors but the wider public.

Can I Liquidate My Company Assets?

A Liquidation will involve a realisation of the assets and after the costs of the Liquidation have been met, then the surplus funds will be distributed to creditors. The Liquidator needs to get the best possible price for the company assets to maximise the potential realisations available.

A company’s Director cannot act as a Liquidator and it is easy to see why that is the case. The insolvency of the company that causes a Liquidation will mean that nothing must affect the safeguarding of the assets so that the losses suffered by the creditors are minimised. A Director would have a conflict of interest between their personal interests and those of the company.

Assets Sold At Undervalue

If a Director sells any of the company assets shortly prior to Liquidation then a review will need to be undertaken by the Liquidator to ensure that the sale price achieved was fair and reasonable based on market values. If a Director has undersold any of the assets, then he or she might be personally liable for any loss suffered by the company. This is important and particularly noticeable when a Director or a connected party might be the purchaser and accused of a Transaction at Undervalue.

That is why it is better to leave matters to the Liquidator to resolve so that the correct procedures are undertaken such as obtaining an independent valuation.

Investigation of the Directors’ Conduct

A Liquidator has to report on the conduct of the Director. In particular when there have been instances of misconduct and misfeasance by Directors.

There would be a huge conflict of interest with it being largely impossible for a Director to investigate their own conduct if a Director was permitted to Liquidate his or her own company. Such an investigation and relevant report where applicable is there to safeguard the public.

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For a free no obligation chat about any of the matters detailed above, please do get in touch for help. An expert will call you back or if you prefer exchange emails.

We can explore your situation and consider the best way to help you and your business needs. You can call us 020 3925 3613 or fill in the form below and will get back to you quickly. We Know Insolvency Inside Out.

Author: Elliot Green
Last Updated: May 20, 2024

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Disclaimer: Can I Liquidate My Company Myself?

This page is not legal advice and is not to be relied upon as such. This article Can I Liquidate My Company Myself? is provided for information purposes only. You should take independent advice on the facts of your case. No liability is accepted for reliance upon this post.

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