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Liquidation

Objective

An orderly winding down of business and maximisation of recovery value to creditors and shareholders. The business entity will eventually be dissolved.

Description

Members’ voluntary liquidation

Provides corporate groups with a cost effective method of closing down under-performing, dormant subsidiaries or legacy structures. It is useful for the reorganisation
of group structures following an acquisition. The entity must be solvent and has the ability to meet all its liabilities as a pre-condition.

For more information on the services that we provide in relation to member’s voluntary liquidation, please refer to our Member’s Voluntary Liquidation Brochure.

Creditors’ voluntary liquidation

This is initiated by the company when they are unable to continue operating as a going concern. The creditors play a central role and have the right to determine the
appointment of a Liquidator. The Liquidator will realize the assets of the company for the benefit of the creditors.

Compulsory liquidation

This is a winding up process of a company via an application to the Court. The Liquidator is usually nominated by the petitioner and appointed by the Court. The duty of
the Liquidator is to realize assets for the benefit of the creditors

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