In essence, a company liquidation entails a liquidator (see further below) taking company assets and turning them into cash - with which any debt owed to creditors can be paid. At its end, the company is removed from the register at companies house and is considered dissolved.  Subject to numerous laws and regulation, company liquidation (or winding up) can be complex and a licensed insolvency pra…

There are two types of voluntary Liquidation; a members voluntary liquidation (MVL) and a creditors voluntary liquidation (CVL).   A companies solvency determines which voluntary liquidation procedure is used for a voluntary winding up. A members voluntary liquidation may be used where the directors / owners believe the company is solvent (a solvent liquidation).    Should a company be insolve…

A compulsory liquidation will most frequently start with a statutory demand or county court judgment (CCJ) from a creditor for money owed.  Left unanswered or undisputed, that creditor may submit a winding up petition to the court.  It requests that a winding up order be made to liquidate or 'wind up' said company, as it is insolvent.  It is through compulsory liquidation and the appointment of an…