Types Of Company Liquidation

Summary

Voluntary liquidation is initiated by shareholders, requiring a special resolution and appointing a liquidator to manage asset distribution. Compulsory liquidation is court-ordered due to insolvency, initiated by creditors or shareholders, with a court-appointed liquidator and potential investigation. Voluntary liquidation offers more control and a potentially faster resolution, while compulsory liquidation can be lengthy and involves court proceedings. Consider consulting a local attorney for detailed guidance.

Full Conversation

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Hey! Here's a quick overview of liquidation types and steps:
*. Voluntary Liquidation:
- Initiated by shareholders.
- Requires passing a special resolution.
- Involves appointing a liquidator.
- Liquidator handles asset distribution.
*. Compulsory Liquidation:
- Court-ordered due to insolvency.
- Petition filed by creditors or shareholders.
- Court appoints a liquidator.
- May involve investigation of company affairs.
Implications:
- Voluntary: More control over process, potential faster resolution.
- Compulsory: Can be lengthy, involves court proceedings, possible investigation.
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