Whilst liquidation can be a difficult process for some companies, there are some advantages to the process. One of the main advantages is that all those involved in the company will be able to move forward once the process is finished. Companies that enter a Members Voluntary Liquidation will find that the process ends much quicker as opposed to a Creditors Voluntary Liquidation, which often takes longer as a result of a full investigation of the company being carried out.

A Creditors Voluntary Liquidation also has some advantages. During this process, the liquidator is more involved, meaning that company directors are free from hassle from creditors. Whilst many company directors dislike the liquidator taking over the company, others may feel relieved that the company’s debt problems are in the process of being solved.

The liquidation process does have disadvantages. If a company wrongfully declares that it is solvent during the Members Voluntary Liquidation process, then the…

Source by Ashlyn Henry

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