Business & Company: Insolvency & Liquidation - Guides
Insolvency & Liquidation
3. What is Liquidation?
Firm / Chambers:
Last updated: 11 Aug 2015
- A liquidation may be voluntary or compulsory. Compulsory liquidation means it has been ordered by a court.
- Most liquidations are voluntary liquidations. These include:
- members’ voluntary liquidations where the company is solvent; and
- creditors’ voluntary liquidations where the company is insolvent.
- Insolvent liquidations are most often compulsory liquidations. These liquidations typically involve a liquidator being appointed by the court following a successful winding up application by a creditor.
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