A Liquidator is normally paid from the assets realisations made during the Liquidation, but what if they company has no assets and therefore cannot afford to finance such a route?
There are two alternatives to choose in such a situation. The first would be for the directors to personally finance such a Liquidation (although in such circumstances, we would always limit the amount that the director would have to pay), or the directors could apply to have the company struck from the Register using S1003 of the Companies Act 2006.
A S1003 strike off is normally only available to those companies which have little, or no, assets.
It is an application to Companies House to have the company name struck from the Register.
There are, of course, strict rules which must be followed in accordance with the Companies Act. Failure to follow these rules could result in the liabilities of the company becoming liabilities of the directors personally.
Purnells assist many companies through the process to include dealing with Companies House and creditors queries. We act as "buffer" between the creditors and company and we ensure that the procedure is followed in accordance with the law, therefore, no personal liability of the directors can occur.
We provide a fixed quote for undertaking this work on behalf of the company, so there are no hidden "extras".
Should you wish to discuss this procedure further, then please telephone Suzi Purnell on 01633 214712 or e-mail: email@example.com to arrange a free, mutually convenient meeting, which could take place on the telephone or at our office in Newport.
Alternatively, you can contact us by completing our on-line contact form by clicking the link below:
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Can't afford a Liquidation.