Liquidation is a procedure through which the assets of a company are realised and distributed to creditors. Following the end of liquidation, the company is dissolved.
There are three types of liquidation – which are as follows:
- Compulsory liquidation
A company can be placed into liquidation by an Order of the Court where a petitioning creditor issues a winding up petition against the company.
- Creditors Voluntary liquidation (CVL)
This is the opportunity for shareholders and directors to decide to close the business and appoint a Liquidator.
- Members Voluntary liquidation (MVL)
Here the shareholders resolve to appoint a Liquidator and all of the liabilities of the company (including the expenses of Liquidation) are (usually) settled within 12 months.
If your business is encountering financial difficulties please contact one of our experts for a free, no obligation meeting to discuss your circumstances and the options available to you.