Continuing our series of basic informative articles Cheryl Sacks explains winding up a company
Winding up or liquidation is the process of realising a company's assets to settle any debts. Any surplus is distributed to those entitled to it. Then the company ceases to exist — that is it is dissolved and struck off the Register of Companies. Liquidations are governed by Insolvency Act 1986. A liquidator who must be a licensed insolvency practitioner performs the winding up. The words winding up and liquidation are used interchangeably below.
Reasons for winding up a company include:
● cessation of trade;
● retirement of directors and majority shareholders with nobody to take over the business;
● shareholders...
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Continuing our series of basic informative articles Cheryl Sacks explains winding up a company
Winding up or liquidation is the process of realising a company's assets to settle any debts. Any surplus is distributed to those entitled to it. Then the company ceases to exist — that is it is dissolved and struck off the Register of Companies. Liquidations are governed by Insolvency Act 1986. A liquidator who must be a licensed insolvency practitioner performs the winding up. The words winding up and liquidation are used interchangeably below.
Reasons for winding up a company include:
● cessation of trade;
● retirement of directors and majority shareholders with nobody to take over the business;
● shareholders...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
