What does liquidating mean
From the day the directors agree to liquidate, it takes around 14 days to put a company into creditors’ voluntary liquidation.
If 90% or more of all shareholders agree to short notice, then the liquidation can happen within seven days (this is the minimum statutory notice period to creditors).
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Creditors Voluntary Liquidation is started by the directors, they tell the shareholders the company is not viable, it is insolvent and they must stop trading.
There are three types of liquidation/close down in the UK: Now read guides below or click on Liquidation Flowchart for a quick guide.It’s very common, quick and a very powerful way to close a business and deal with things properly.You can get on with a new business or job, the company is closed, leases cancelled and all the staff made redundant.A statutory declaration of SOLVENCY is required, this is an important legal process and expert advice is required.
You must take care when going down the members voluntary liquidation path.If you think the type of liquidation your business faces matters, think again as the problems and elements associated with compulsory liquidation include: Liquidation and whether it is a good or bad solution depends on your circumstances.