Company Liquidation Advice For Directors
22/01/2018 | Insolvency
Your Company Liquidation Questions Answered.
Company Liquidation - help is at hand.
Do Liquidators Hold Formal Qualifications?
Insolvency Practitioners are authorised through a number of professional bodies such as the Institute of Chartered Accountants in England & Wales (ICAEW). Typically, an Insolvency Practitioner will be a qualified accountant but this is not a necessary qualification.
Employees of the Insolvency Practitioner do not have to be qualified to the same extent but are likely to have formal qualifications in their area of expertise including accountancy or insolvency.
Tim Corfield who is the Managing Director of Griffin & King is a law graduate, Chartered Accountant and Insolvency Practitioner. It is our recommendation that directors should seek advice from a qualified accountant as well as an insolvency practitioner as that person is likely to have a better understand of accounting issues and have more experience in dealing with the affairs of companies.
What is the best way to find an Insolvency Practitioner?
Directors of a company are likely to have a good relationship with their professional advisers, such as accountants or solicitors. We recommend that you make enquiries of such professionals as to who they have had dealings with and who they can recommend. The internet and other means of advertising are also available and would provide details of local firms. If using the internet to search always look at the companies’ testimonials a useful barometer to guide you.
We recommend that directors instruct Insolvency Practitioners they feels they can work with and trust. It is important to have a meeting with the Insolvency Practitioner in the first instance and not necessarily a manager of that firm or consultant to that firm. It is far better to establish direct rapport with the Insolvency Practitioner as soon as possible as it is the Insolvency Practitioner who will be making the decisions regarding any issues of conduct carried out by the directors and other matters in connection with the liquidation process.
Are directors automatically disqualified?
Directors are not automatically disqualified and a disqualification is quite unusual. The Insolvency Practitioner is required to report on the conduct of all of the directors within three months of being appointed liquidator to the company. In the event of an adverse report being issued to the Insolvency Service the decision remains with the Insolvency service as to whether any further investigations are made and any disqualification proceedings be taken.
How do I know if my company is insolvent?
Companies are defined as being insolvent if the liabilities of a company exceed the assets. Another definition of insolvency is if the company is unable to pay its debts as they fall due. Examples are circumstances that should make the directors of a company aware that a company is potentially insolvent are as follows:
- The bank overdraft is at its ceiling.
- The company bankers are bouncing cheques.
- PAYE is not being paid on time.
- VAT is not being paid on time.
- Suppliers are not being paid on time.
Should directors be in any doubt whatsoever that their company is insolvent they should seek advice from an Insolvency Practitioner. Tim Corfield, Janet or Mark are happy to assist you with your Company Liquidation queries. Call us now on 01922 722205. Alternatively you can contact Janet by text on 07545 806531 or email firstname.lastname@example.org.