Liquidation timeline — week by week

Director decision to proceed with CVL through to liquidator appointment. Activities:

• ›Initial conversation with the Licensed Insolvency Practitioner (free, 30–60 minutes).
• ›Engagement letter signed; SIP 9 fee disclosure provided.
• ›Directors compile information for the Statement of Affairs (assets, creditors, employees, contingent liabilities).
• ›Board resolution to wind up; notice issued to shareholders for special resolution.
• ›Notice issued to creditors of the decision procedure (deemed consent or virtual meeting under SIP 6).
• ›14-day notice period for the creditor decision procedure — shorter notice possible with creditor consent.

Typical duration: 2–3 weeks. Faster possible (1 week) where directors are organised and creditors don't object to short notice. Longer where the company has complex preparation needs.

The members' special resolution to wind up is passed. The creditors' decision procedure runs in parallel — either deemed consent (creditors who don't object are deemed to consent) or a virtual meeting under SIP 6. See the Section 100 meeting spoke for a detailed walkthrough.

On the same day, the liquidator is appointed. Directors' powers cease at this point under section 91 Insolvency Act 1986. Directors retain office but have no operational role.

First administrative duties of the liquidator:

• ›Notice of appointment filed with Companies House.
• ›Notice published in the London Gazette and a local newspaper.
• ›Statement of Affairs sent to creditors.
• ›Initial report to creditors with first details of the procedure.
• ›Notice to HMRC, banks, employees, and key counterparties.

Realisation of company assets. Activities depend on what the company owns:

• ›Bank account closure and balance recovery (typically 2–4 weeks).
• ›Debtor collection — chasing book debts, agent appointments for substantial debtors.
• ›Stock and equipment sale — via auction, broker, or trade sale.
• ›Property realisation if applicable — typically takes 3–6 months.
• ›Investigation of director loan accounts, antecedent transactions.

Simple cases (no significant assets) skip much of this stage. Complex cases may extend it to 12+ months. The liquidator's interim reports to creditors update on progress.

Section 218 Insolvency Act 1986 requires the liquidator to investigate director conduct in every CVL. This is routine — not an indication of suspected wrongdoing. The liquidator reviews:

• ›When the company became insolvent (insolvency tests at relevant dates).
• ›Antecedent transactions (preferences, transactions at undervalue, voidable charges).
• ›Director loan account position.
• ›Dividend lawfulness.
• ›Wrongful trading position (section 214 IA 1986).
• ›Misfeasance (section 212 IA 1986).

If matters of concern emerge, the liquidator may issue questionnaires to directors, request further information, or in rare cases bring claims. The Insolvency Service receives a section 7A CDDA 1986 report on the directors' conduct — this is routine and does not imply wrongdoing. See the Wrongful trading spoke for the s.214 framework.

If sufficient realisations are achieved, distribution to creditors in statutory order: secured (to extent of security), preferential (employee claims; HMRC for VAT/PAYE/NIC/CIS/student loans post-1 December 2020), unsecured.

In most SME CVLs, unsecured creditors receive limited or no distribution. The liquidator typically makes a first interim distribution within 6–12 months and a final distribution at closing.

Final activities to close the case:

• ›Final report to creditors with summary of receipts, payments, and distribution.
• ›Final account of receipts and payments filed at Companies House.
• ›Companies House dissolves the company three months after the final meeting (now automatic under current rules).

From dissolution, the company ceases to exist. Director duties relating to that company conclude.

Total timeline summary

Simple CVL (small SME, modest assets): 12–15 months total. Mid-complexity SME CVL: 15–20 months. Complex CVL (property, substantial assets, investigation): 20–30 months. The first 6–10 weeks are the most active for directors — after that, the liquidator handles the procedure with periodic updates.