Solvent Liquidation | Silke & Co Limited

Solvent Liquidation

If the directors or shareholders want to cease trading for the purposes of retiring for example, they can propose a members voluntary liquidation. In order to do this a company needs to be solvent, this is where it is able to satisfy the debts due to creditors in full, plus interest and the costs of the liquidation from the assets of the company, within a twelve month period. The shareholders can appoint a liquidator in order to realise the assets, pay the creditors from the proceeds and distribute the remaining net proceeds to the shareholders.

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