The voluntary procedures, which are initiated by the shareholders and directors are explained in more detail below and the compulsory procedure, which is usually initiated by creditors like HMRC via a court order, is also covered.
Compulsory liquidation is usually initiated by a creditor that is looking to force a company into closure via a court order.
The parties who are entitled by law to petition for the compulsory liquidation of a company vary from jurisdiction to jurisdiction, but generally, a petition may be lodged with the court for the compulsory liquidation of a company by: The grounds upon which one can apply for a compulsory liquidation also vary between jurisdictions, but the normal grounds to enable an application to the court for an order to compulsorily wind-up the company are: A "just and equitable" winding-up enables the grounds to subject the strict legal rights of the shareholders to equitable considerations.
As the Director of a limited company, it is a relief to know that you are able to put your company into Voluntary Liquidation and make a fresh start, putting the past well and truly behind you.
With the right Liquidator, support and advice, Voluntary Insolvency can be an ideal way to close a company that has just got too much debt to carry on effectively.
The company is struck-off the registrar of companies and this is known as dissolution, which is the final stage of the liquidation process.
There are two voluntary liquidation procedures and one compulsory procedure.