Methods of Liquidating a Company

Liquidating a company is split into two categories:

  • The company can pay everyone it owes money to (solvent)
    • Members’ Voluntary Winding Up
  • The company cannot pay everyone it owes money to (insolvent)
    • Creditors’ Voluntary Winding Up
    • Compulsory Winding Up

Insider Tips:

When winding up an insolvent business the liquidator must make a report to the Government Insolvency Service. This report relates to the  conduct of the company directors.