a procedure for securing the liquidation of a company without intervention from the court or the Official Receiver. Members' voluntary liquidation is used for solvent companies and creditors' voluntary liquidation for insolvent companies.
The sale of the assets and wind-up of operations that is controlled by the owners of the business, and where residual value normally is expected to be realized by the owners. Contrast with forced liquidation.
The placing of the company into liquidation by resolution of the members - there are two types of voluntary liquidation member's voluntary liquidation; and creditor's voluntary liquidation. The first of these does not involve insolvency and comes about merely because the (shareholders) members wish to have the value of their shareholding realised e.g. on the retirement of the principals of the company was incorporated has been fulfilled.
liquidation that is supported by a company's shareholders, as opposed to an involuntary liquidation forced by Chapter 7 bankruptcy. A voluntary liquidation can occur in two situations. One is a members' voluntary liquidation when the directors of a solvent company decide to liquidate the company (with shareholder approval), and declare that they will be able to fulfill all creditor obligations in 12 months. The other situation is a creditors' voluntary liquidation, when the directors approach an insolvency professional for assistance in liquidation since they will not be able to fulfill creditors' obligations. See Also involuntary liquidation
See creditors’ voluntary liquidation and members’ voluntary liquidation.
Liquidation proceedings that are supported by a company's shareholders.
Liquidation proceedings which are supported by a company's shareholders.
when a company itself decides to appoint a liquidator