What are the effects of a company liquidation?
After a company liquidation, there are many different things that happen throughout the process, and many things that will occur after the liquidation process has started and completed. The effects of company liquidation on a company means that it will stop trading, and the authority of the directors will no longer exist. The directors are replaced by insolvency practitioners or liquidators whose job is to reconcile the assets of the business for the benefit of creditors who are awaiting the payback of debts.
One of the first things that will happen is all of the company’s employees are automatically dismissed. Other effects that will occur are creditors can no longer pursue the directors as long as there were no personal guarantees made, the company will come to a formal and legal end, and directors are free to leave and do something else. Company bank accounts will be frozen, there is no need to prepare any more accounts, and there is also no need to file any tax returns.
You can learn more about the effects of a company liquidation at https://www.bridgenewland.co.uk/insolvent-company-liquidation.