What Is A Company Voluntary Liquidation?
The directors of a company may elect to voluntarily liquidate the business in order to realise available assets for distribution to shareholders. It is also a useful tool for tax planning and as part of company reorganisations. It is important for Directors to seek advice early. The earlier the advice is taken, the more options are generally available. Here is some more information on company voluntary liquidation: Reasons For Voluntary Liquidation There are a variety of reasons why a company will be placed into liquidation and these vary depending on the business circumstances. Commonly a directors’ voluntary liquidation will be undertaken to avoid a Winding Up Petition being issued by creditors, or as the directors recognise that the company is insolvent and there are no viable options for recovery. It can also be used to extract any funds that shareholders might wish from the company after cessation of trading, or…
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