If you want a liquidation quotation for a limited company Oliver Elliot can help you with that and also do the work. We do not refer you to other professionals where we can and wish to do the work.
We are a firm of Chartered Accountants with a Licensed Insolvency Practitioner who is our CEO, Elliot Green. A considerable body of our work is doing voluntary liquidations for companies that are either insolvent or solvent.
Only a Licensed Insolvency Practitioner can act as a liquidator. If you are a director who wants to place a company into voluntary liquidation then you need to find and work with a liquidator to ensure that you comply with the legislation and regulations.
Undoubtedly cost will be a consideration for most people, not least if you have a company that is insolvent and suffering from cash flow difficulties and struggling to pay creditors. We can assist as we can do low cost liquidations at an attractive price for many company directors. It will however depend on the facts of the case as to the level of the liquidation quotation.
What Controls Our Liquidation Quotation?
A key consideration as to what controls our liquidation quotation to liquidate a company is the type of Liquidation.
In the case of a solvent liquidation, this will be a Members Voluntary Liquidation.
In the case of an insolvent liquidation, this will be a Creditors Voluntary Liquidation.
Generally, there is a little more involved and more compliance work required for a Creditors Voluntary Liquidation because for example only it will involve the Liquidator having to do a report on the conduct of the Directors to the Insolvency Service. This involves the need to undertake certain investigations such as into the causes of the company’s failure.
This is not required in a solvent Members Voluntary Liquidation.
There are various matters which control our liquidation quotation for a company but two key considerations will be the type and volume of creditors and assets of the company.
Effect Of Volumes Of Creditors
If you want a quote to liquidate a company with lots of creditors then generally the costs will rise. But why should this be the case?
The reason the cost to liquidate a company with lots of creditors (and potentially of varying rights such as secured, preferential and unsecured) is likely to be higher than one with fewer creditors is because more creditors means more time needing to be spent dealing with a greater range of individuals who may be unfamiliar with the process.
The more parties involved raises the risk of disputes cropping up which again can mean more time spent dealing with the liquidation and therefore the potential for higher costs.
Assets To Be Realised
A key role of any liquidator is to realise the assets of the company so after the costs of liquidation a dividend can be paid to creditors and in the case of a solvent liquidation to the shareholders.
As with creditors the more assets and the greater the range of them the more time a liquidator is likely to have to spend dealing with them. That drives up the costs and therefore the quote to liquidate the company.
Disbursements As Part Of A Liquidation Quotation
In order to place a company into liquidation there are a series of disbursements that will need to be paid such as placing advertisements in the Gazette and the Insolvency Practitioner Bond.
These are not optional and they will add to the costs. There may well be some other small disbursements as well.
Should Price Be The Only Consideration For A Liquidation Quotation?
Whether or not price should be the only consideration for a liquidation quotation is a matter of individual choice and preference.
However, it might be worth considering that a liquidator is someone with whom the directors will have to engage and work with. There is a human dimension to this and as such it might merit consideration.
We understand that when a company is insolvent directors may be very worried about the effects of it on their future as well as how they have to navigate the company’s affairs through liquidation. We will assist directors through the process from the cradle to the grave to get the best result for the company that we can.
If you would like a quote then please do contact us for help.
