Members' voluntary liquidation
You may choose members' voluntary liquidation if your company is 'solvent' (can pay its debts) and:
- you want to retire
- you want to step down from the family business and nobody else wants to run it
- you don't want to run the business any more
- you want to restructure your business
There are 6 steps to voluntary liquidation:
Ask Accountant in Bankruptcy for a declaration of insolvency.
Fill in the declaration - it must be signed by the majority of directors.
Call a general meeting with shareholders at least 5 weeks later and pass a resolution for voluntary winding up.
Advertise the resolution in The Gazette within 14 days.
Appoint an authorised insolvency practitioner as a liquidator who will take charge of winding up the company.
Send your signed form to the Accountant in Bankruptcy within 15 days of passing the resolution.
When the liquidator is appointed they take control of the company. Your responsibilities as a director will change.