Voluntary Liquidation Process
Voluntary Liquidation (or Creditors Voluntary Liquidation to give it its full legal name), is where the directors and shareholders of a company make the decision to place it into liquidation.
As it’s a formal insolvency process, it must be carried out by a licensed Insolvency Practitioner. Insolvency law puts in place certain time restrictions, as well as legal obligations for both the company, and the acting Insolvency Practitioner.
We’ve illustrated the basic processes involved below. However, the first step is always to speak to a licensed insolvency practitioner to review your position.
As voluntary liquidation is a paid service that we provide, you won’t be too surprised when we say it is normally a better option! However, in terms of making you better prepared and able to cope with what liquidation will throw at you, voluntary liquidation is a much more controlled solution.
It also gives you chance to find out any other information or options that you might not be aware of. This means that you can plan for what liquidation will entail, rather than having the choices of the Official Receiver forced upon you.
