6 May 2022: As with many aspects of the insolvency world, the average person will have little if any knowledge as regards the role of the liquidator and what it takes to achieve that title. It is, perhaps, the ominous, mysterious ring of the term that dissuades many from delving into the subject. Or, more likely, it’s the fact that no director wants to confront the subject unless they really have to, i.e. in the event of financial difficulties.
If you chose to instruct a private firm to undertake the liquidation of your company, a licenced insolvency practitioner will bear the ultimate responsibility for the management of the process. This is a legal requirement in the UK. Only those holding the necessary licence from an authorising body can offer the service and, if appointed with the consent of creditors, act as a liquidator in voluntary liquidation cases.
Often insolvency practitioners will have a background in the accountancy profession, however, to make the career transition, applicants will need to pass two exams set by the Joint Insolvency Examination Board. They will also need to provide sufficient evidence of practical experience in the workplace to satisfy the authorising body’s criteria. If successful, the applicant will be issued with a licence and join the ranks of 1,700-plus insolvency practitioners operating in the UK.
Due to the complexity of insolvency legislation, not to mention the myriad business scenarios that will be encountered, the practitioner’s knowledge base and skills will develop over time, with support from independent legal advisors when necessary. In a well-managed firm, they will have also have the support of a team of insolvency administrators who efficiently undertake the numerous, time-pressured tasks required to progress a liquidation case.
At BRI, we have a management team – including four highly-experienced insolvency practitioners – who spend their working day advising directors on possible solutions to pressing financial problems; over-seeing the smooth administration of casework and applying their knowledge and expertise to the complex issues that can arise on liquidation cases. We also have teams of competent, efficient insolvency administrators with a combined wealth of experience.
Importantly, BRI are intent on stripping-away the mystery of the liquidation process and any sinister implications that the word ‘liquidator’ may hold. After all, mystery will only heighten anxiety when you’re going through a difficult time. Whether giving initial advice or working on the latter stages of a liquidation, our focus will always be on explaining our services and the related processes in a clear, accessible and friendly way. The word ‘liquidator’ may be intimidating but – as our clients will agree – the reality of meeting our approachable, down-to-earth insolvency practitioners and staff will quickly dispel any trepidation that you might have.
For a free, no-obligation and confidential discussion, please contact any one of the management team at BRI Business Recovery and Insolvency.