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You can choose to liquidate your limited company (also called ‘winding up’ a company).

The company will stop doing business and employing people.

A creditors’ voluntary liquidation is the most common type of liquidation for an insolvent limited company.

A majority of shareholders must vote to adopt a resolution to voluntarily wind up the business.

They will sell to a company that specializes in store liquidation instead of attempting to run a store closure sale themselves.

The parties who are entitled by law to petition for the compulsory liquidation of a company vary from jurisdiction to jurisdiction, but generally, a petition may be lodged with the court for the compulsory liquidation of a company by: The grounds upon which one can apply for a compulsory liquidation also vary between jurisdictions, but the normal grounds to enable an application to the court for an order to compulsorily wind-up the company are: A "just and equitable" winding-up enables the grounds to subject the strict legal rights of the shareholders to equitable considerations.

Once the process has been completed the company will be struck off the company register and cease to exist.

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Voluntary liquidation of a limited company can be done for the purpose of closing a business for reasons other than insolvency and is known as a members’ voluntary liquidation.

To fully understand the process, first make sure your business is a limited company.

A limited company or LTD is set up as a separate legal entity from your personal finances and consists of members who own shares in the company.

A company’s owner may wish to retire or the business does not have a good long-term financial outlook and shareholders want to close the business before it becomes insolvent.

Shareholders must pass a resolution to place the company into liquidation and even though court involvement is not required, a qualified liquidator must be appointed.