Who is a Liquidator and what do they do?
A Liquidator must be a Licensed Insolvency Practitioner in order to be appointed on a formal company liquidation or business rescue process within the UK.
A Liquidators’ main job is to collect and sell any assets of the company for the purpose of being able to provide a dividend to creditors. The assets will be valued by an independent valuation agent to be sure that they are valued at a fair price.
Processes that a Liquidator can be appointed on
- Members’ Voluntary Liquidation
- Creditors’ Voluntary Liquidation
- Company Voluntary Arrangement
- Company Administration
- Pre-Pack Administration
Duties of a Liquidator
If appointed a liquidator can help on the following matters during a company liquidation or business rescue process:
- Dealing with company creditors
- Collecting outstanding company debts
- Dealing with company employees and assisting with their claims for Redundancy pay, notice pay, holiday pay and outstanding wages
- Dealing with any company assets
- Preparing all statutory paperwork
Only a Licensed Insolvency Practitioner can be appointed as Liquidator on a formal company liquidation or business rescue process in the UK. Please be aware of sales advisors or “ambulance chasers” who are employed to act as a third party agent between the limited company and the Insolvency Practitioner. They are not licensed and will request a fee for transferring you to a Licensed Practitioner.