The court will then appoint and pay a liquidator, although they will recover these costs from the sale of any assets which are still owned by the company.It is possible for the directors of the company to apply for an order on behalf of themselves or the shareholders (often because they do not want to, or are unable to, fund the cost required for a voluntary liquidation).Closing a company in this situation may trigger your liability to pay in such circumstances.It may be that you owe the company money via a directors loan or in some other format.With this method it is the creditors who appoint and pay the liquidator.
This is usually because someone who the company owes money to has petitioned the court.
When the company is insolvent, the interests of the people your company owes money to (its creditors) legally come before those of the directors or shareholders.
Your company will still be registered at Companies House and you’ll still need to send an Annual Return and accounts to Companies House.
If the limited company has outstanding debts then it may be applicable to consider liquidation as a method of closing the company.
Liquidation involves a ‘liquidator’ being appointed to wind up the affairs of a company.