Insolvency & Liquidation
5. Creditor Voluntary Liquidation
Firm / Chambers:
Last updated: 11 Aug 2015
- A creditors’ voluntary liquidation can occur in several ways. This includes following the voluntary administration of a company where at a meeting:
- the company’s creditors pass a resolution that the company be wound up rather than enter a deed of company arrangement (DOCA); or
- creditors of a company under a DOCA pass a resolution that the company be wound up;
- where a liquidator appointed in a members’ voluntary liquidation forms the view that the company is insolvent even though the directors made a solvency declaration; and
- in similar circumstances to a members’ voluntary liquidation but where no declaration of solvency is made.
- In contrast to a members’ voluntary liquidation a creditors’ voluntary liquidation involves an insolvent company.
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