Creditors Winding Up

Creditors Winding Up is most commonly used to describe the process of the insolvent liquidation of a company.

Insolvency of a company is most often shown by the inability of a company to pay those who it owes money to when they are due for payment.  A worsening of this position can be evidence of insolvency.

Creditors Winding Up procedure in the context of liquidation refers to the closure or “winding up” of the affairs of a company.

Creditors Winding Up procedure can refer to a Creditors Voluntary Liquidation and also to Compulsory Liquidation.  When it is used to refer to the “winding up” of a solvent company this may refer to a Members Voluntary Liquidation.

Creditors Voluntary Liquidation is an insolvent company Creditors Winding Up procedure voluntarily started by the company directors.

Read more about Creditors Voluntary Liquidation.

Compulsory Liquidation is an insolvent Creditors Winding Up procedure which is generally initiated by company creditors (those who are owed money by the company).

Read more about Compulsory Liquidation.

Company Liquidation for a solvent company will refer to a Members Voluntary Liquidation.

Members Voluntary Liquidation is started by the Shareholders of a company with a view to distributing the value of the company assets to the Shareholders.

Read more about Members Voluntary Liquidation.