How to Liquidate a Company and Can I Do It Myself?
Whether a company is solvent or insolvent, it is not possible to liquidate a company yourself. Any company liquidation must be handled by a licensed insolvency practitioner (IP). Unless the company has been issued with a winding up petition by a creditor, the directors of the company make the decision to liquidate it and instruct an IP. So, let’s look at how to liquidate a company. Types of company liquidation There are three types of company liquidation in the UK: Compulsory liquidation Creditors’ Voluntary Liquidation Members’ Voluntary Liquidation With a compulsory liquidation, an insolvent company has been forced to liquidate by their creditors. In a Creditors’ Voluntary Liquidation (CVL), the directors have made the conscious decision to liquidate an insolvent company. For a Members’ Voluntary Liquidation (MVL), the directors have made the decision to close a solvent company. Can I liquidate a company myself? In the UK, you are not allowed to liquidate a company yourself. The...