In the event of insolvency, to limit your liability, you need to liquidate the company.
When a limited company is placed into liquidation, the shareholders and directors are not personally liable for the debts of the company, unless personally guaranteed. Once the company is in liquidation, creditors cannot take legal action against either you or the company (except for any personal guarantees).
The Liquidator once appointed, takes legal control of the company from the directors and deals with the winding up, at which point the directors are free to pursue new opportunities.
How to Liquidate
It is cheap, easy and fast.
It is a simple three step process, involving three meetings:
- Directors board meeting
- Shareholders meeting
- Creditors meeting
The directors are able to buy the assets of the company from the Liquidator, should they wish to do so, and use the assets to trade a new business.
We will work with a licensed insolvency practitioner which is legally able to act as liquidator.