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
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.