Winding up your company (Liquidation)
The purpose of liquidation is to ensure that your company is wound up and its affairs are brought to an orderly conclusion.
Winding up by the Court and Creditors' Voluntary Liquidation
A petition to wind up a company can be presented by either a creditor or by the company's directors or shareholders. A petition to the court may or may not result in the appointment of a Provisional Liquidator, whose job is to safeguard the company's assets pending the appointment of a Liquidator. If the petition has been presented by a creditor, you may have the opportunity to pay that creditor's debt and have the petition dismissed. If you do not pay, then the petition will be advertised and the court will make an order that your company should be wound up. A meeting of creditors will be called and a liquidator will be appointed. It's his or her job to realise whatever assets the company has and pay a dividend to the creditors.
Members' Voluntary Winding Up
This procedure can only be used if the company is solvent. It is generally used where a business owner wants to retire and realise the value in the business or where the company has reached the end of its natural life e.g. when it has completed the purpose for which it was incorporated. For more information, contact Antonia.