Personal and Company insolvency
Compulsory & Members liquidation
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- Members’ voluntary liquidation – where the shareholders of a company decide to put it into liquidation, and there are enough assets to pay all the debts of the company, i.e. the company is solvent.
- Creditors’ voluntary liquidation – where the shareholders of a company decide to put the company into liquidation, but there are not enough assets to pay all the creditors, i.e. the company is insolvent.
- Compulsory liquidation – where the court makes an order for the company to be wound up (a ‘winding-up order’) on the petition of an appropriate person. This would usually be a creditor of the company. It can also be the directors of the company. If there is more than one director, all the directors must present the winding-up petition jointly – a single director cannot present a winding-up petition.