We have a company which has ceased to trade and its balance sheet comprises simply this (paraphrased):
Distributable reserves £43998
Share capital £2
That's it folks!
They are considering appointing a liquidator to wind up the company. Any income dividends would be subject to higher rate tax.
I am informed that the going rate for a liquidation in these circumstances is around £5K. They have got to be having a giraffe!
I have no personal experience in liquidations, and so I keep an open mind. But would someone please clue me in on what procedures would be involved by an insolvency practicioner to deal with this, and how many chargeable hours that would involve (or any other justification, or is it simply a supply v demand question)?
Perhaps the figure of £5K banded around is off base?
With kind regards