What is Liquidation (definition)

“termination of a business by using it’s assets to discharge it’s liabilities”

A liquidation process is not solely due to a business becoming insolvent. A common reason for liquidation is for the directors/shareholders to close a company which has accumulated large reserves and to realise the value in a tax efficient way.

There are 3 types of liquidation:

Members Voluntary Liquidation – where directors/shareholders close a company with large accumulated reserves. In a Members Voluntary Liquidation the company is solvent, creditors are paid in full and the remaining funds transferred to the directors/shareholders. For a more detailed explanation of a Members Voluntary Liquidation click here

Creditors Voluntary Liquidation – where a company can no longer meet it’s debts as they fall due i.e. insolvent. For a more detailed explanation of a Creditors Voluntary Liquidation click here

Court Liquidation – where a company, through either it’s directors or creditors, makes an application through the courts to have a Liquidator appointed

Closedforbusiness.ie specialise in providing experienced Liquidators for Members Voluntary Liquidations and Creditors Voluntary Liquidations.

To discuss your requirements and how our services work in more detail please call our confidential advice line or request a call back above.