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Business records in liquidation.
In every kind of liquidation, the liquidator takes control of the company’s assets. That usually includes its digital records.
This page is general information, not legal advice. Every case depends on its own facts and documents.
The three kinds
| Type | When | Who acts |
|---|---|---|
| Creditors’ voluntary liquidation (CVL) | The company can’t pay its debts and the shareholders decide to close it | A licensed insolvency practitioner as liquidator |
| Compulsory liquidation | A court orders the company to be wound up, usually on a creditor’s petition | The official receiver at first, sometimes followed by an insolvency practitioner |
| Members’ voluntary liquidation (MVL) | The company is solvent and the shareholders decide to close it | A licensed insolvency practitioner as liquidator |
What it means for records
- Once a liquidator is appointed, the directors’ powers largely stop. Decisions about selling or licensing company assets, including records, are for the liquidator.
- The liquidator still has to deal with data protection, confidentiality and any client or contract restrictions. Owning the records doesn’t settle those.
- Paid-for systems such as Microsoft 365, hosted servers and project software may be switched off when bills stop. Early preservation matters. See digital records in liquidation.
- After the liquidation ends, the company is dissolved. Anything not dealt with is then much harder to reach. See dissolved companies.
Scotland and Northern Ireland
The broad shape is similar, but procedure and rules differ in places. Check the rules that apply to the company’s registration.
How a sale is approved
The liquidator decides, within their statutory powers and duties. Sales to people connected with the company carry extra disclosure rules. We don’t treat any sale as approved until the liquidator confirms it in writing.
Early steps for office-holders
- List the systems: email, file shares, servers, cloud and project software, and who pays for each.
- Keep paid-for services and admin access alive while you decide, where that’s proportionate.
- Note what is personal data, client material or held under contract.
- Check whether any charge or third-party rights cover the records.
- Decide whether records have any value before anything is wiped or devices are sold.
This is a practical prompt list, not a statutory checklist or a timetable.
Official sources
- GOV.UK: Liquidate your limited company
- GOV.UK: Creditors’ voluntary liquidation
- GOV.UK: Members’ voluntary liquidation
- GOV.UK: Search the insolvency register
Back to insolvency guides. Questions about a case? Email [email protected].