The whole process was handled without any fuss, we were surprised and relieved that it all went so smoothly.
Liquidating online was simple and easy. As soon as I started the process, all the stress went away. Thankyou.
Risks of liquidation?
Are there any risks of liquidation?
Yes, but not really.
Directors and shareholders are not liable for the debts of the company, unless they have signed personal guarantees to the bank, suppliers, landlord, finance lease , etc.
To put things in perspective, operating as a sole-trader is the equivalent of being a director of a company and giving a personal guarantee to every party the company ever deals with.
Company’s are disposable by their very nature. The Limited in Limited Company refers to the fact that the investors, managers, staff of a company have limited liability for their actions and the debts of the company.
The company debts are ring-fenced, and can be cancelled by placing the company into liquidation, legal, quick, permanent.
Personal guarantees cannot be extinguished by liquidation, they are a personal matter and have to be dealt with outside the Liquidation process.
So the risk of personal financial implications for Directors have to be assessed.
The main risk of negative impact to the Directors of Liquidation is if they are singled out for disqualification proceedings by the Insolvency Service, due to serious mismanagement of the company, that breached Companies Act and Insolvency Act and Company Directorrs Disqualification Act phew
But in practice, if the liabilities of the company, is under £50,000 the chances of being banned as a director are minimal. nada. de minimis. zip.
Over 6 figures, well, the risks start to rise, but you will only get a ban if you have been reckless.
There are many , many thousands of companies going into liquidation, established businesses, that have failed not as a result of mismanagement, on the contrary they were well managed.
But economic conditions and technology are making all markets hyper-competitive, so that even well managed businesses that have been profitable over a period of years, get into difficulty, through no fault of their own, – the world changed, and its still changing, so being successful is so hard, and sustaining that success the greatest challenge of all.
Liquidation is easy. It is not risk free, but what is.
Running a business is hard, but the rewards of success drive us on.
LIquidation is a tool, that allows Directors to manage a company.