| Liquidation means the winding up of a company. The company’s creditors must be informed, the staff made redundant and the company’s assets, if any, realised. There are three types of liquidation:
Creditors Voluntary Liquidation (CVL)
The procedure for a CVL is quite straight forward but nevertheless a specialised exercise. To start the procedure, the director(s) of the company must decide at a board meeting that the company is insolvent and cannot continue its' business as a result. An insolvency practitioner is then appointed to deal with the necessary processes. The shareholders and the directors have to be called to meetings in order to pass resolutions to formally put the company into liquidation.
Members Voluntary Liquidation (MVL)
Where a company is solvent, for various reasons, it may be appropriate for the shareholders to seek to liquidate the company. This will require the company’s liabilities to be discharged in full.
ALJ can assist with tax planning matters to ensure that shareholders receive the maximum repayment of capital.
Compulsory Liquidation
The company will be wound up following a petition, which is usually issued by one of the creditors. | 
