Process of liquidating
The company won’t exist once it’s been removed (‘struck off’) from the companies register at Companies House.When you liquidate a company, its assets are used to pay off its debts. You’ll need a validation order to access your company bank account.If that money hasn’t been shared between the shareholders by the time the company is removed from the register, it will go to the state.You’ll need to restore your company to claim back money after it’s been removed from the register.This is not the same as its debts being discharged, as happens when an individual files for Chapter 7.The debts still exist in theory, at least until the statute of limitations has expired, but there is no debtor to pay them, so they must be written off in practice.
The company will stop doing business and employing people.Assets are distributed based on the priority of various parties’ claims, with a trustee appointed by the Department of Justice overseeing the process.The most senior claims belong to secured creditors, who have collateral on loans to the business.Also, remember that if you are liquidating assets to satisfy creditors you may need to obtain their consent to do so.Inventory the assets your business owns and wishes to liquidate.
A broker may forcibly liquidate a trader’s positions if the trader’s portfolio has fallen below the margin requirement or she has demonstrated a reckless approach to risk-taking.