Require Immediate Support? Free Director Helpline: 0800 644 6080

Real Business Rescue

Free Director Helpline: 0800 644 6080

What happens to a company after a liquidator is appointed?


Company liquidation timeline once a liquidator is appointed

A liquidator will be appointed to take control of the company and the company liquidation procedure will commence thereafter. The liquidator, either an Official Receiver (OR) or insolvency practitioner, will raise funds to repay creditors and close the company, leading to its removal from the Companies House register.

What are the next steps after appointing a liquidator?

On first entering insolvency the company should have stopped trading, and if there is no hope of recovery it will enter liquidation. Once a liquidator is appointed, the statutory procedure commences, which eventually ends in the company’s closure.

An important point to note is that the liquidator acts on behalf of creditors rather than the company or its directors, and one of their main roles is to realise company assets and then distribute the proceeds to creditors.

The company is a separate entity to its directors, who may need to account for any transactions or situations that have placed it in jeopardy during the time leading up to insolvency.

So what does the liquidation procedure involve once the liquidator takes office – what happens to the company?

background curve

Take Our Free 60 Second Test

Get an instant understanding of your:

  • Debt and Asset Position
  • Formal Insolvency Options
  • Next steps

Plus much more ...

Start The 60 Second Test
apps on mobile screen

The company is run by the liquidator

As soon as the liquidator is appointed, they take control of the company away from the directors. Only the Official Receiver (OR) or a licensed insolvency practitioner (IP) can act as liquidator, and carry out formal insolvency procedures such as this.

The liquidator will analyse the company’s assets and liabilities, its existing contracts, and prepare a statement of affairs to present to creditors. This lets creditors know the extent of the company’s financial situation and how it has reached this position.

When the liquidator is appointed, directors are no longer able to use the business’ bank account – in essence, the company’s financial affairs are ‘frozen’ for a time until the liquidator has made their assessment.

Can’t pay CBILS or Bounce Back Loan?

Don't worry - there are thousands of other company directors in the same position. If you are struggling to keep up with your Covid loan repayments, speak to a member of the Real Business Rescue team to discuss your options. It's Free & Confidential.
The team are available now -  0800 644 6080

Get a Quote Find Your Nearest Office

The company’s directors

Although directors do not take any further part in controlling the company once the office-holder is appointed, they must assist the liquidator if requested. This typically involves providing information when asked, or financial documentation, and generally supporting the liquidator where necessary.

Creditors are informed of the company’s situation

It used to be the case that in-person creditors’ meetings were held to inform creditors about the situation, but this part of the liquidation process was changed in 2017 and new insolvency rules introduced.

The company’s position is presented to creditors via a statement of affairs, and this is now done electronically rather than at a creditors’ meeting, although meetings can be arranged is sufficient numbers of creditors request it.

The company’s winding-up is announced in the Gazette

The fact that a liquidator has been appointed and the company is being wound up is announced in the local Gazette, and this could be London, Edinburgh, or Belfast-based. The notice includes other details, such as the liquidator’s registered office and date of appointment, and alerts creditors to the company’s situation if they are not already aware.

Company assets are realised

The liquidator will have the company’s assets professionally valued, including intangible assets such as intellectual property, databases, and goodwill. Once a fair value has been established, the assets are sold at auction. The proceeds are gathered in by the liquidator, and used to repay the company’s creditors according to the statutory order of payment in these cases.

Bad publicity

The public announcement regarding the business’ liquidation in the Gazette may result in bad publicity for the company, as well as reputational damage for the directors. This may or may not be justified, however, as insolvencies can happen very quickly and are often outside the directors’ control.

Need to speak to someone?

If your company is struggling with unmanageable debts, squeezed cash flow, or an uncertain future, you are far from alone. We speak to company directors just like you every single day, and we are here to give you the help and advice you need.
Call our team today on 0800 644 6080

Removal from the Register of Companies

Once creditors have been repaid as far as funds allow, the company is struck off the register at Companies House. It cannot be reinstated in the future, but depending on the outcome of the liquidator’s investigations into director conduct, directors may be able to take office at new companies in the future.

Real Business Rescue specialises in helping directors of companies in financial distress, and provides reliable independent advice. If you believe your company may need to be liquidated, we will ensure you understand your duties and obligations as a director, and guide you through the process.

Please contact one of our partner-led team of licensed insolvency practitioners to find out more. We can arrange a same-day consultation free-of-charge, and operate a broad network of offices around the UK.

reviews io logo

Real Business Rescue are here to help

Still unsure whether liquidation is right for your company? Don't worry, the experts at Real Business Rescue are here to help. Our licensed insolvency practitioners will take the time to understand the problems your company is facing before recommending the best course of action going forward based on your own unique circumstances.

  • UK’s Largest Liquidators
  • 100+ Offices Nationwide
  • 100% Confidential Advice
  • Supported 25,000+ Directors
Meet The Team
Team Of 4

Team of Qualified Experts

Trusted team of experts on hand to assist

Meet The Team
Rbr Accreditations Blue

Looking for immediate support?

Complete the below to get in touch

Here at Real Business Rescue we take your privacy seriously and will only use your personal information to contact you with regards to your enquiry. We will not use your information for marketing purposes. See PRIVACY POLICY
10,000+ Tests Completed

Free 60 Second Test

For Ltd Company Directors

Get An Instant Understanding Of Your:

  • Debt and Asset Position
  • Director and Liability Review
  • Next Steps

Plus much more ...

Real Business Rescue Recommended
  • UK's leading business funders
  • Free Brokerage Service
  • Full Market Access
  • Over 30 years' experience
  • Strong relationships with HMRC
  • Support from start to finish
  • 10,000 potential buyers
  • 12,000+ Businesses Sold
  • 60+ Years Experience
Next Steps

We provide free confidential advice with absolutely no obligation.
Our expert and non-judgemental team are ready to assist directors and stakeholders today.