How is it Possible to be in Voluntary Liquidation but Still be Trading?

Mercurial

I'm looking at upgrading my windows from UPVC which are around 20 years old to wooden frames for my Victorian terrace.

A couple of friends have recommended a local company which has many 5* reviews and they received great service and are really happy.  I've checked their status in Companies House and they are in voluntary liquidation with "confirmation statement overdue".  I'm not going to do business with them it's too risky but can they still be trading legally?

bris

Yes, they are fighting to stave off "compulsory liquidation" which is when the creditors force their hand. To qualify for voluntary liquidation they have to employ an insolvency practitioner to help them trade their way out of debt so the company can be liquidated on better terms.

For directors it's a way of showing you are doing your best and help stave off any claims of directorial fraud as it's an offence to trade whilst insolvent, directors can be held personally liable in certain circumstances so it's not really about the directors doing right by the creditors it's more about self preservation.

The insolvency Practitioner takes control of the company so trading with it should be without risk.

Jeepers_Creepers

Give them a helping hand, Merc.

And pay the deposit using a Credit Card

Mercurial

Bris thank you that's really interesting. Can their voluntary liquidation status carry on indefinitely if the insolvency practitioner is involved with running the company?

Mercurial

Jeepers-Creepers lol I'm not sure I'm brave enough to do business with them.

Jeepers_Creepers

Do you research - use the CC for the deposit, and you should be covered should anything go wrong.

There are 'figures' involved, but I don't know what they are...

At the moment, tho', you have a local company who has a good reputation and who are trying to stay on their feet. AS LONG AS YOU ARE PROTECTED, surely it would be a 'good thing' to go with them if you can?

An alternative is that they might have insurance protection for monies handed over - the window company I used had this.