Creditors’ Voluntary Liquidation
Voluntary liquidation (liquidation that is instigated by the Directors) takes effect at a meeting of the company’s members (its shareholders). The appointment of the liquidator is then immediately put to a meeting of the company’s creditors for ratification. Creditors may at their meeting replace the liquidator appointed by the members with one of their own choosing. – or replacement.
Voluntary liquidation is the most common insolvency process for companies. It is suitable where a business cannot be restructured to make it viable and brings its affairs to an orderly conclusion.
The Liquidator will realise what assets there are and use these to defray liquidation costs, with any surplus being returned to the creditors of the company.
Live Recoveries can advise you on the voluntary liquidation procedure and how to instigate it.
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