Company Liquidation

The liquidation of a company can come about through a number of ways dependent upon whether a company is insolvent or solvent. An insolvency practitioner will provide advice and guidance as to which is the best option based upon a company’s specific financial circumstances and the directors’/shareholders’ wishes.

When considering which route to go down, the following will help in this decision making process: –

• Is the business insolvent or solvent?
• Do the directors want to wind up the company themselves or let the pressing creditors arrange to do this?

Compulsory Liquidation

If it has been decided to let the creditors take whatever legal action is necessary to liquidate the company (Winding up Petition) then you may wish to seek advice about compulsory company liquidation.

A compulsory liquidation is where the company’s assets are sold and the monies emanating from them are distributed to the creditors of the company. Following a winding-up petition, a court order will need to be obtained for the company to be placed into compulsory liquidation with the company ultimately being dissolved.

Voluntary Liquidation

If you wish to close your solvent business down, perhaps because you are retiring and no longer have a use for it and don’t want to sell it as a going concern, then you can arrange to place it into Members’ Voluntary Liquidation.

If the business is insolvent and you can see no benefit in continuing to try to trade out of the situation and you are not being unduly pressed by your creditors then putting the company into Creditors’ Voluntary Liquidation is an option.

There are a number of ways that a company can be placed into either compulsory or voluntary liquidation so it is important that you get some specialist, professional advice.

In that respect, do get in touch with us so that we can arrange this for you.