Liquidating a company is a process that one can wind up his or her company because of any personal issue or they have to settle down in another town by vacating the whole company. This process can be classified into two types they are the voluntary liquidation and compulsory liquidation. Compulsory liquidation is the process that the person who is related to the company’s legal document that he or she may be the partners and as well as the shareholders of the company. The liquation for the compulsory process must be very difficult for the persons who are involved in the company. voluntary liquidation process is the easiest way either the company can shut down their process or the shareholders can inform the company management they will wind up their company and settle the amount for the business. And mostly the company chooses this voluntary liquidation process to set a free life.
Terms for voluntary liquidation
Voluntary liquidation is the process that if the company chairman of the shareholders can make a move for winding up a company. In this way they have to uplift their company and their goods can be sold over by a good rate also. By this voluntary liquidation process, the company can easily settle their cash to the other fellow members and the other concerned shareholders of the company that they are related to them. It is the process that terminates the company process and it reset their financial customs and if they are willing to recreate their company by voluntary liquidation they have to start their own company under a new name. Voluntary liquidation is a process that one cannot easily make a decision of winding up their company, they have to conduct a board meeting to all the company members and they have to analyze the suggestions of each and everyone in the company and they finally make a decision to end up a company. Once we have decided to wind up a company we should not face any notice by the court or the opposite parties which who are also called the enemies of the company too. We formally send the notice to all the concerned companies and they are having the idea to buy the company they came forward to buy that company by giving the concerned amount. If any of the share persons and the partners in the company are willing to buy the company shares its utmost welcome to the company and they are always the well-wishers of the company. Involuntary liquidation, there are only two reasons one is the financial problem and another one is if any of the persons in the company will leave for the sake of their life. Another thing is that the members involved in the company will demand the amount that they invest. For this process, the company had made a decision to make a move by wind up the company. There is no necessity to receive or send any official notice to the court or any other process. The only thing is that the person who involved in this and another company want to buy the shares, and this is the easiest way to liquidate a company.