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Old 11th Jan 2011, 23:50
  #86 (permalink)  
Whirlygig

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Join Date: Feb 2003
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Er .. not strictly true. The state of affairs of some companies can be such that they can go into a Creditors' Voluntary Liquidation straight away without having the process of either Adminstration or Receivership first.

If a substantial, non-secured creditor, feels that the company is trading fraudulently (i.e. it does not have the working capital to meet its liabilities), that creditor can apply to the courts for a Creditors' Voluntary Liquidation. If other creditors come forth (as they undoubtedly would after a posting in the London Gazette) and support the application, the courts can impose the liquidation.

There is also the Members' Voluntary Liquidation where the shareholders of a profitable company can just decide to commit suicide.

Cheers

Whirls
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