Technical Bite

 In this first in our series of technical bites we explain the different types of liquidation for companies.

Creditors voluntary

For insolvent companies ie those that cannot meet all of their existing liabilities as they fall due.  Characterised by mounting debt and a limitation on cashflow.  Initiated by the Board convening meetings of shareholders and creditors.

Compulsory

A court process in respect of insolvent companies, as a result of a winding up order being made by the court most commonly on the petition of a creditor following an unpaid debt.  

Members

For solvent companies who wish to close their business, pay all creditors and extract their investment.

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