Liquidating a company sounds like a scary and difficult thing to do, but in reality it is usually very straightforward and hassle-free. The problem is that even the most realistic directors do not give much thought to what would happen if their company faces liquidation. Forward-thinking and effective business planning is vital, but there are all sorts of reasons why liquidation could become an issue and these are not always things that directors can prevent or even plan for.
So what should directors know about liquidation? Actually, those who manage their business properly and have proper business practices in place do not need to know a great deal about liquidation. The main thing they should be aware of is that if liquidation becomes an option then expert advice is vital. So long as they recognise the importance of seeking assistance, directors should not have to worry about the intricacies of liquidation.
“We have experts who know the process inside-out, so directors do not have to worry about the rules and regulations,” explains Lyndon Ogden, Director at Company Liquidation Services.
“So long as directors know to come to us for assistance as soon as they face insolvency or liquidation that is the main thing.”
In fact, directors whose companies go into liquidation do not play much of a role in the process. As soon as the liquidation process begins the directors are relieved of their obligations, leaving them free to move on to other companies or business interests. And because they can now start the liquidation process online it is even more efficient, quick and cost-effective.
In effect, a director can start a company liquidation online having gained advice from the experts, and then he is free to get on with his life.
The other parts of the process are handled by the appointed liquidator, and he will only need the director in the event of further information being required. The whole process usually takes around six to eight months, and when finalised the liquidation means the company ceases to exist.
“Liquidating a company is usually straightforward and there is no need for directors to trouble themselves about the process,” Lyndon continues.
“Of course, if they have any questions or concerns the experts are there to help at any stage.”