Liquidate liquidating liquidation dating near you
It is a way for a business that has run out of funds (is insolvent) to cover any remaining debts.The main reason a business would choose to liquidate their assets is due to insolvency.If this happens then you could made liable for PAYE, VAT and creditors monies from the time that you should have known the company had no reasonable prospect of surviving the problems it faced.Additionally, the directors may face disqualification proceedings under the Company Directors Disqualification Act 1986 for up to 15 years, they can be fined and may face the loss of personal assets like your home, or even personal bankruptcy.So act now and get help for your company and more importantly start reducing your own risks.The action described above can be regarded as wrongful trading; if a liquidator can prove there was wrongful trading then, you are at much increased personal risk. A classic example of wrongful trading is taking credit from a supplier or taking deposits from customers when you know that it is unlikely that you can pay them back.
Their main responsibilities are to take stock of the company’s assets and pay, if funds are available, a percentage to the creditors.
If the company is deemed insolvent any remaining assets will be sold in order to pay off any remaining creditors.
Any amount remaining after all necessary payments have been made is then distributed amongst any shareholders.
What is more, if as a director, you have been compliant and on the payroll for many years, you can actually claim redundancy from the government like any other employee.
But, and it is a big but, if you fail to act in time, fail to act reasonably, fail to keep books and records, continue taking credit KNOWING that the company cannot possibly repay it, then you ARE at risk of personal financial loss or worse such as losing your house.