Liquidation – Voluntary and involuntary liquidation

There are two types of voluntary liquidation and one type of involuntary (compulsory) liquidation.

Voluntary liquidation

A members’ voluntary liquidation is where the directors or shareholders of a company decide to put it into liquidation and the company is solvent (there are enough assets to pay all the company’s debts).

A creditors ‘ voluntary liquidation is where the directors or shareholders of a company decide to put the company into liquidation and the company is insolvent (there are not enough assets to pay all the company’s debts).

Involuntary (compulsory) liquidation

A compulsory liquid ation is where the court m akes a winding-up order on the petition of an appropriate person, for example, a creditor.

More information

• Liquidation – What is liquidation?
• Liquidation – The liquidation process
• Liquidation – Winding up a company
• Liquidation – The advantages of liquidation
• Liquidation – The disadvantages of liquidation
• Liquidation – The alternatives to liquidation
• Liquidation – I am owed money by a company in liquidation
• Liquidation – Insolvency and liquidation