Employer wants to conduct liquidation themselves

epsilondraconis

I am in a situation where I have been employed by a company for many years and unfortunately the organisation has hit financial problems. I am owed a large amount of money in unpaid salary (there are also other employees that are also owed money).

The company doesn't have sufficient cash (or have sufficient assets) to pay all of the creditors and so is effectively insolvent.

The company director says that they want to conduct the liquidation themselves because they are either unable or unwilling to pay a liquidator.

If the company appointed an official liquidator, I could claim my statutory redundancy / notice pay / holiday pay etc from the government. If the company director attempts to conduct the liquidation themselves, is it possible for me to obtain the redundancy pay etc from the government?

If it is, at what point can this occur? e.g. After they write to Companies House and pay their £10 to have the company struck off?

If it isn't possible for me to obtain redundancy due to the director choosing to (try to) liquidate the company themselves, what action is available to me?

Thanks in advance for your help.

toddle2u

Unfortunately what your Directors are attempting to do is not liquidate the company but merely have it disolved. If they do this you will be unable to claim your unpaid redundancy,pay and holiday pay from the RPO. Only an IP can liquidate a company formally.

epsilondraconis

Thank you for your reply Toddle2u.

getmore4less

I think you get classed as a prefered creditor