Voluntary Liquidation UK.
Voluntary liquidation in the UK is divided into two categories solvent and insolvent liquidation. Whilst both result in the final dissolution of your company they are carried out for different reasons.
Voluntary Solvent liquidation
Solvent liquidation also known as a Members’ Voluntary Liquidation occurs when you and any other company directors decide to close down a successful and financially healthy limited company. This could be due to retirement a return to employment or simply that the company’s offering is no longer relevant or needed.
During a solvent liquidation, an Insolvency Practitioner of the shareholders’ choice is appointed to carry out the process. The Insolvency Practitioner will value and liquidate all company assets, pay creditors and distribute the remaining funds to the shareholders.
Ready to liquidate your solvent company? Contact one of our in-house liquidation experts today. Your company can be dissolved in as little as 3-6 months.
Voluntary Insolvent Liquidation
Insolvent voluntary liquidation may be appropriate if your company can no longer meet its financial obligations as they fall due. Although your company may be insolvent you can still opt for a voluntary liquidation known as Creditors’ Voluntary Liquidation. This option is often preferable to waiting for a winding-up order to be imposed by the court.
At the start of an insolvent liquidation, your company’s creditors (or, if not, the shareholders) will agree to appoint an Insolvency Practitioner. Once appointed the Insolvency Practitioner will carry out the liquidation process. This will include notifying all interested parties, the selling of company assets and distribution of liquidated funds across your company’s creditors.
If you think your company is insolvent it is important that you act now and get guidance from a licensed Insolvency Practitioner. Continuing to trade an insolvent company can result in heavy fines. Contact The Liquidation Centre today and stop the worry of creditor pressure.