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In What Cases Can I Proceed With the Liquidation of a Company

There are a number of situations whereby a company can be liquidated. The majority of company liquidations are either voluntary or compulsory. However, the circumstances for entering a company liquidation process are different for each company.

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In What Cases Can I Proceed With the Liquidation of a Company

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  1. In What Cases Can I Proceed With the Liquidation of a Company?

  2. WHEN TO ENTER COMPANY LIQUIDATION? Compulsory liquidation – the company is unable to pay their debts and its creditors apply to the courts to liquidate the company. Creditors’ voluntary company is unable to pay its debts but the directors decide to liquidate before being forced to by its creditors. Members’ voluntary company is able to pay its debts but wants to close for business. liquidation – the liquidation – the

  3. COMPULSORY COMPANY LIQUIDATION This type of liquidation happens when a company that can’t pay its debts is forced into liquidation by its creditors. It is usually a last resort action by creditors when all other efforts to recover debts from the company have failed. If the debts are in excess of £5,000, a creditor is able to issue a winding up petition to the court. The court, if in agreement, will appoint an official receiver, also known as an IP, to liquidate the company and its assets in order to recover the creditors’ debts.

  4. CREDITORS’ VOLUNTARY COMPANY LIQUIDATION When a company is unable to pay its debts to creditors, and the situation is unlikely to change, the directors of the company are able to make the decision to enter into company liquidation voluntarily. There are different situations that warrant a creditors’ voluntary liquidation: There are no immediate funds available and the company is no longer viable Creditors are threatening to issue a winding up petition or other legal action

  5. MEMBERS’ VOLUNTARY COMPANY LIQUIDATION A company may only enter a members’ voluntary liquidation if they are solvent, i.e. they have sufficient funds to pay their debts including tax liabilities and any contractual obligations. So, why close the company? There are a number of reasons why the directors of a solvent company may decide to close the company: The owner/directors of the company want to retire

  6. Mailing Address Norwich NR2 1SN, United Kingdom Phone Number CONTACT INFORMATION +44 800 246 1845 Email Address TALK TO US! mail@leading.uk.com Website www.leading.uk.com

  7. THANK YOU! Looking forward to working together.

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