what-is-liquidation
What Is Liquidation
Writen by Neil Parnham
This involves the liquidator selling off all the assets of the company in order to raise some finance from the company, once the items have been sold the debt will be paid off and any remaining finance will go to the share holders of the company if applicable. When the process of liquidation has been completed the company ceases to exist and will be struck off the company register. There are three forms of liquidation
Compulsory Liquidation
This occurs when a company is wound up by an order of the court
Creditors Voluntary Liquidation
This is an arrangement where the directors ask the creditors to approve the winding up of the company because they have decided that the company cannot continue to trade and cannot pay its debts in full.
Members Voluntary Liquidation
This form of liquidation is used where the company is able to pay it’s debts in full, but the members wish to realise their investment. If you would like further assistance in financial matters please do not hesitate to call us, to find out more information please visit our website and we will be able to offer you a free initial assessment to see if we can help you in your situation.
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