Calling all you lawyers - company liquidation
Discussion
^^^ not anymore (VAT/HMRC no longer get preferential payments)
Basically what happens now is the administrators spend time valuing the company and its assets. They then value the assets at roughly a little less than their professional fees and take the lot.
Basically what happens now is the administrators spend time valuing the company and its assets. They then value the assets at roughly a little less than their professional fees and take the lot.
Edited by john_p on Friday 31st October 19:02
john_p said:
^^^ not anymore (VAT/HMRC no longer get preferential payments)
Thanks for the heads up i never knew that. I always thought it unfair anyways that they were preffered, while someone relying on payment for goods/services from the liqidated company will go bang if they don't get paid.john_p said:
Basically what happens now is the administrators spend time valuing the company and its assets. They then value the assets at roughly a little less than their professional fees and take the lot.
Hahahah, yeah thats probably more like it.john_p said:
Basically what happens now is the administrators spend time valuing the company and its assets. They then value the assets at roughly a little less than their professional fees and take the lot.
[/footnote]
It really has become that simple hasn't it, I bet KPMG et al were hoping you wouldn't notice [/footnote]
welshbikerduck said:
john_p said:
^^^ not anymore (VAT/HMRC no longer get preferential payments)
Thanks for the heads up i never knew that. I always thought it unfair anyways that they were preffered, while someone relying on payment for goods/services from the liqidated company will go bang if they don't get paid.The administrator will look at the affairs of the company and work out the value of any assets it has and look to realise them to pays the outstanding debts, after it has paid itself of course.
After that the debts will generally not exist, they will be wiped clean. There will be a report into the running of the company by the directors and they may face further action such as directors disqualification orders. HMRC can also make orders for transferring tax debts to the directors personally in some circumstances.
After that the debts will generally not exist, they will be wiped clean. There will be a report into the running of the company by the directors and they may face further action such as directors disqualification orders. HMRC can also make orders for transferring tax debts to the directors personally in some circumstances.
Hmm... quite interesting.
This particular company filed in June (unknown to me), but a week before gave different bank details for future payments saying his bank were rubbish so he had changed (companies house currently show him as owing the previous bank £16k).
He was rather crap in completing tasks, but did advise me of general financial problems within his company. I dripped him more of the outstanding amount (ie. advanced more money outside contract) to keep him afloat and doing more work.
So the money I had paid him to this different bank account since he filed (about £20k), should really have gone to the administrators?
This particular company filed in June (unknown to me), but a week before gave different bank details for future payments saying his bank were rubbish so he had changed (companies house currently show him as owing the previous bank £16k).
He was rather crap in completing tasks, but did advise me of general financial problems within his company. I dripped him more of the outstanding amount (ie. advanced more money outside contract) to keep him afloat and doing more work.
So the money I had paid him to this different bank account since he filed (about £20k), should really have gone to the administrators?
MikeyT said:
I don't think it's lawyers you want (yet) it's accountants ...
No, Insolvency Practitioners, who can be either lawyers or accountants.Liquidation is different from administration, because there is no pretence of saving the company. The liquidator's job is to sell the remaining assets to raise funds to repay creditors in the order of preference after they prove in the liquidation.
Get your claim in!
Claim for what? He stated that he wasn't owed any money.
Liquidations can be voluntary or enforced. When a company has outlived its usefulness, the owners may decide to wind it up voluntarilly.
Often, however, a major creditor of the company (often HMRC) will apply to have the company forceably wound up in order that they can obtain some of the monies they are owed. As has been pointed out, however, the Revenue no longer rank as preferred creditirs and have to stand in line with everyone else.
Preferred creditors may still exist. These would be lenders who have some sort of charge over the company's assets or the employees in respect of unpaid wages or redundancy money due.
The one thing that is a big no-no is the directors creaming money from the company prior to the liquidation commencing. That is looked on as fraud and could result in the directors facing a criminal prosecution.
Liquidations can be voluntary or enforced. When a company has outlived its usefulness, the owners may decide to wind it up voluntarilly.
Often, however, a major creditor of the company (often HMRC) will apply to have the company forceably wound up in order that they can obtain some of the monies they are owed. As has been pointed out, however, the Revenue no longer rank as preferred creditirs and have to stand in line with everyone else.
Preferred creditors may still exist. These would be lenders who have some sort of charge over the company's assets or the employees in respect of unpaid wages or redundancy money due.
The one thing that is a big no-no is the directors creaming money from the company prior to the liquidation commencing. That is looked on as fraud and could result in the directors facing a criminal prosecution.
Edited by Eric Mc on Friday 31st October 23:11
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