Liquidating a ltd company
Liquidation (or "winding up") is a process by which a company's existence is brought to an end.
First, a liquidator is appointed, either by the shareholders or the court.
It can take account of personal relationships of mutual trust and confidence in small parties, particularly, for example, where there is a breach of an understanding that all of the members may participate in the business, Upon hearing the application, the court may either dismiss the petition, or make the order for winding-up.
The court may dismiss the application if the petitioner unreasonably refrains from an alternative course of action.
In addition, the term "liquidation" is sometimes used when a company wants to divest itself of some of its assets.
This is used, for instance, when a retail establishment wants to close stores.
If you fail to act and if eventually the company is wound up by the creditors (compulsory liquidation) then the Official Receiver (OR) will be appointed to liquidate the business and he or she will investigate the activity of the directors and the business over the last 2-3 years.
This risk RISES the longer you don't act to put the company into liquidation.This procedure enables directors to write off unsecured limited company debts that are not personally guaranteed.