Voluntary vs involuntary liquidation
The difference between choosing liquidation and having it imposed.
Voluntary
In a creditors' voluntary liquidation, the company's members resolve to wind up the company after the directors conclude it is insolvent. The directors choose the timing and nominate a liquidator.
Involuntary
A court liquidation usually follows an application by a creditor — often after a statutory demand has not been complied with within 21 days. The court appoints the liquidator. Directors have far less say over timing or process.
Acting early generally keeps more options open.
General information only — not legal or financial advice. Any figures or time limits are indicative and can change. Every situation is different; speak with us about yours.