Liquidation fees ?

Delancey

It's my understanding that when a company goes into liquidation a liquidator ( almost invariably an accountant ) oversees the process and sells off all the assets and after taking his/her fees out of the proceeds distributes the cash to the various creditors in order of preference.

Imagine a company that leases it's vans , rents it's premises , has had all the stock re-possessed by suppliers , etc , i.e. a company with no saleable assets - in these circumstances how does a liquidator ever get paid ?

BTW do solicitors ever act as liquidators ?

dermot_sheehan

The directors of company pay the liquidator's fees up front personally.

The reason they do it is to ensure an orderly winding up of the company and to avoid prosecution or personal liability if the company is struck off with debts.

Alternatively if it is liquidated pursuant to a petition of a creditor, that creditor can put up the money for the fees.

FreudianSlippers

All too common these days really