1. How the Liquidation Process Works

2. The liquidation process may vary depending on the type
of liquidation procedure that the company is
undertaking. If a company is liquidating voluntarily, then
it will either undertake a Members Voluntary Liquidation
(MVL) or a Creditors Voluntary Liquidation (CVL). If a
company is given a winding up order by a court, then it
is liquidated compulsorily.

3. A Members voluntary liquidation process will consist of the
company directors deciding to liquidate the company with
the approval of shareholders. Companies entering this type
of liquidation are usually solvent. The process will involve
the company declaring that it is solvent and that the debts
will be able to be paid off within twelve months. Companies
who fail to state that they are solvent or wrongfully declare
themselves solvent may face penalties. An insolvency
practitioner will be required to liquidate the company.

4. If a company is insolvent, then it may enter a Creditors
Voluntary Liquidation (CVL). This process often takes
longer and includes more involvement from creditors.
A liquidator will thoroughly investigate the company,
value and sell the assets and ensure that the creditors
are paid. Regular meetings with the creditors are held
during the procedure.

5. The compulsory liquidation process involves a creditor
petitioning to the court. Company directors can also
petition for a winding up order, but this can only be done
by a group of directors and not a single one. The company
will receive a winding up order in court and the liquidation
process will be brought to an end. This type of liquidation
can be stressful, but may be a relief for those who wish to
move on from the company.

6. In order for the liquidation process to run
smoothly, the company's liquidator must be
qualified. If a company feels that the process
has not been dealt with correctly or that the
appointed insolvency practitioner was not
qualified, then they can file a complaint.

7. In order for the liquidation process to run
smoothly, the company's liquidator must be
qualified. If a company feels that the process
has not been dealt with correctly or that the
appointed insolvency practitioner was not
qualified, then they can file a complaint.