Company Liquidation

There could be a number of reasons for voluntary liquidation such as financial losses, death of the owner, the goal of the company being achieved or maybe the goal of the company do not exist anymore. Voluntary liquidation is a business decision. This phase is very often a challenge for management who is typically operating vehicles as a going concern. During this phase, specific legal, operational and financial aspects have to be considered, as well as their timing. Mandatory Liquidation If a company violates the rules and regulations of the authorities or commits a crime such as fraud or any other serious offense, or maybe because it is insolvent, ie. it no longer has any money to continue and cannot meet its existing debt obligations to its creditors. The government will immediately close the company and in this case, mandatory company liquidation is required as per the court order. With the help of an approved liquidation firm, the assets are liquidated and the creditors paid back as much as possible.