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Liquidation of an Ltd Company

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When seeking Limited Company liquidation, the procedures would follow those prescribed by laws governing any company, other than a Sole Proprietorship or a Limited Liability Partnership. Keep in mind that dissolving a solvent company always follows different procedures than bankruptcy liquidation. If the company is solvent, and has been so within the five weeks leading up the formal resolution to wind up a company, then Ltd company liquidation is pretty straightforward. Information on procedures is available at Companies House government website that will detail the exact steps which should be taken, or it is possible to enlist the services of an Insolvency Practitioner to help from the very beginning at the directors voluntary liquidation meeting.

As there are very strict rules which must be adhered to, it is always wisest to involve a licensed professional so that there are no legal repercussions. Most often the services of an Insolvency Practitioner are required because they are licensed to oversee the liquidation of a company. An IP is most often a solicitor or accountant and has been licensed by either the Secretary of State for Trade and Industry, the Law Societies, the Chartered Accountancy Bodies or the Insolvency Practitioner's Association.

Partnership liquidation, on the other hand, if sought while the company is solvent does not need to go through such structured proceedings. If the company simply wants to wind up and go out of business, there are procedures to follow in order to have the business name struck from the records, but liquidation of a solvent partnership doesn't have members to take into account. Therefore, there are not assets to realise and distribute among shareholders as there are none. Bankruptcy liquidation, on the other hand, follows formal guidelines and should always be handled by a licensed IP.

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