What is "voluntary liquidation"?

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Hi, I’ve done business with a local shipping company in the south of England for years and years. Yesterday, I tried to get in touch with my contact who usually deals with my account, but instead I got some stranger on the phone who’d told me that this company had gone into voluntary liquidation. What on earth does that actually mean?

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Voluntary liquidation is one of the ways in which a company can be officially closed down. An application can be made by the members or creditors of a company.

A members’ voluntary liquidation is available if your company is solvent and you wish to retire or stop running the business for any reason. A majority of the shareholders must pass a resolution to approve the closure.

A creditors’ voluntary liquidation can be proposed by the director(s) if your company is insolvent (unable to pay its debts) and at least 75% of the shareholders’ votes are cast in favour of winding up the company.

a year ago
 

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