There are three types of liquidation:
- Creditors Voluntary Liquidation - Insolvent Company
- Official (Court) Liquidation - Insolvent Company
- Members Voluntary Liquidation - Solvent Company

Creditors Voluntary Liquidation - Insolvent Company

A Creditors Voluntary Liquidation is initiated by the company when it realises that it is insolvent or likely to become insolvent, ie. not able to pay its debts as and when they fall due.

This process involves the members resolving by special resolution to appoint a Liquidator and placing the company into Liquidation. Jamieson Louttit is a Registered Company Liquidator and can assist in and/or undertake all aspects of a Creditors Voluntary Liquidation including:

• Preparation of all minutes of members meetings and all other necessary documentation.
• Convening of the meeting of creditors.
• Realising all of the company's assets and pursuing other recoveries.
• Investigating the affairs of the company.
• Distributions to creditors. Any surplus funds will be distributed to members.
  

The powers, duties and responsibilities of a Liquidator in a Creditors Voluntary Liquidation are effectively the same as for a Court Liquidation.

Upon finalising the Liquidation, the company will be deregistered and cease to exist.

Official (Court) Liquidation - Insolvent Company

In certain circumstances the Court may order that a company be placed into Liquidation.

The failure of a company to pay a debt is the most common ground for an application being made to the Court for a winding up order. Although this application is usually initiated by a creditor, other classes of person also have standing to apply for a winding up in insolvency.

It should be noted that generally a company will be presumed to be insolvent where a demand for payment of a judgment debt, or an undisputed debt has been served on a company and the company refuses to or cannot pay that debt.

Jamieson Louttit is an Official Liquidator of the court and may be appointed by consent of the creditors who are seeking to place a company into Liquidation. He will undertake all aspects of the Liquidation including:

• Convening of the meeting of creditors.
• Realising all of the company's assets and pursuing all other recoveries.
• Investigating the affairs of the company.
• Distributions to creditors. Any surplus funds will be distributed to members.
  

On finalising the Liquidation, the company will be deregistered and cease to exist.

Members Voluntary Liquidation - Solvent Company

Please click Members Voluntary Liquidation to find more information on this subject.