| Compulsory liquidation advice can be given in many | | | | there is not only one director then all the directors have |
| different ways but there are only three different types | | | | to come together to present the petition as it is not |
| of liquidation; members' voluntary liquidation, creditors' | | | | possible for one director to present a winding up |
| voluntary liquidation and compulsory liquidation.This is | | | | petition. |
| not something every company goes through and it | | | | There are three alternatives to liquidation: |
| should not even be taken into consideration if the party | | | | Administration: |
| has not received any legal help or has not been given | | | | This is when the court grants admission orders. The |
| compulsory liquidation advice. Something as serious as | | | | purpose of this is to relieve the company just a little bit |
| this is cannot be done without legal or financial advice | | | | and give them some space from the creditors. This |
| to the accused party. | | | | helps the company as they are guaranteed to be |
| Members' Voluntary Liquidation: | | | | stressed out at the time and may make foolish |
| This happens when the company's shareholders | | | | decisions. |
| choose to put it into liquidation and all the debts the | | | | Informal Arrangement: |
| company may have can be covered by their assets. | | | | The company can choose to make payment plans in |
| Creditors' Voluntary Liquidation: | | | | writing, to the creditors and try to come to some sort |
| This is the opposite of the members' voluntary | | | | of mutual agreement before the issue gets to the |
| liquidation because what happens is, the shareholders | | | | courts. This is often the solution, but not all creditors will |
| decide that liquidation will be best but they do not have | | | | agree to it. |
| enough assets to pay of debts, then the company will | | | | Company Voluntary Arrangement: |
| become insolvent. | | | | This is like the informal arrangement, except this one is |
| Compulsory Liquidation: | | | | formal and includes the directors applying to the court |
| This happens when the court says the company has | | | | involved with some assistance of an authorized |
| to be wound upon the petition of a specific individual. If | | | | insolvency practitioner. |