Voluntary liquidation and Deregistration of Company
When you decide to wind up your business on your own, it would be considered as voluntary liquidation.
When the shareholders approve of the dissolution of the company, the company gets wind up. The winding up of the company is referred to as voluntary when it is self-imposed.
When the company feels like it has no more of a reason to carry on with its activities, all of the shareholders decide to wind it up. This can be because of anything. The major reason behind the winding up of the company is improper cash flow and a lot of debts. When the company feels like it is unable to carry on with day to day functions while having a smooth cash flow, all of the shareholders decide to go for voluntary liquidation.
No court orders
The main thing in case of voluntary liquidation is that there is no involvement of the court. In other cases, the court orders the company to get liquidity. This is carried out with the help of a liquidator.
When happens when a company goes for liquidation?
All of the company’s operations are wound up and terminated, all of the financial affairs are brought to an end and all of the debts are paid back to the creditors. All of this ought to be carried out while keeping a proper plan in mind. Everything should be dealt with accordingly in a proper manner or else a lot of disputes can arise. This is why it is better to take the help of a liquidator so that the may see each and everything and witnesses it so that nothing illegal gets to happen during the process of a company’s liquidation.
The process of voluntary liquidation
Many times, a liquidator is appointed for the liquidation process. The liquidator will be held answerable to the shareholders of the company and the creditors. He will witness the whole of the process and make sure that the haring of the assets is carried out properly while keeping all the rules and regulations in mind.
In case of voluntary liquidation, the liquidation process can be supervised by the shareholders of the company as the company is solvent in this case but if the company is not solvent, the creditors, as well as the shareholders, will supervise the whole process. In the case of involuntary liquidation, the processing will occur because of the court orders.
If you think you are unbaled to support your company and all of the operations are unable to be carried out properly, you can go for the company’s liquidation process. The help of the liquidators can be taken if the shareholders are finding it stressful to support the liquidation process.
If you are going to hire a liquidator for your company’s liquidation, you better search for the best and trustworthy liquidator. this is because it is a very crucial part for the company so you better choose your liquidator with proper care. Farahat & Co help you to find a certified liquidator.