What Are the Risks of a Company Liquidation?

Unless you have signed any personal guarantees, you as a director (and shareholder) will not liable for company debts. This is reflected in the word limited in limited company, which here means limited liability of its directors and shareholders.

If there are any personal guarantees, such as with the bank, landlord, finance company, suppliers and so on, then these must be dealt with separately.

In many cases the directors face no direct risks arising from the liquidation of their company. They are free to act as directors of new or other existing companies and continue their business life as they choose.

If you are worried about disqualification as a director see our Will I Be Disqualified If My Company Goes Into Liquidation? advice page.