Call a general meeting with shareholders no more than 5 weeks later and pass a resolution for voluntary winding up. At the meeting appoint an authorised insolvency practitioner as a liquidator who will take charge of winding up the company. You can find an insolvency practitioner online.
What happens when you wind up a limited company?
You can choose to liquidate your limited company (also called ‘winding up’ a company). The company will not exist once it’s been removed (‘struck off’) from the companies register at Companies House. When you liquidate a company, its assets are used to pay off its debts. Any money left goes to shareholders.
Why would you dissolve a limited company?
Company directors who want a company struck off the register (also known as a company being dissolved) want to have a company marked down as non-existent and still retain full control of the business. Dissolution is usually voluntary by the members (shareholders) if they have no further use for the company.
The CVL process is as follows:
- A meeting of shareholders is called, during which 75% (by value) need to agree to pass a winding up resolution.
- A licensed Insolvency Practitioner is officially appointed to liquidate the company.
- The winding up resolution is sent to Companies House, and also advertised in the Gazette.
How long does it take to wind up a solvent company?
This means that the directors believe that the company will be able to pay all its debts in full within 12 months of commencing the winding up.
How do you wind up a limited company?
How to wind up a limited company, as well as the attached rules and regulations, differ, depending on whether your company is solvent or not. It is important to know that for all winding up procedures, shareholders must attend a meeting, where they vote and 75% of shareholders must agree, for a winding up resolution to be accepted.
How to close down a solvent limited company?
If you want to close down a solvent limited company, you have two main options – striking off or liquidation. The best option for you will usually come down to how much money there is in the company, in both cash and assets. A solvent company will have no outstanding debts of any kind, whether this is to staff, suppliers, or HMRC.
How does a company wind up if insolvent?
If you are thinking of closing down your company (whether solvent or insolvent), the process begins with a resolution to ‘wind up’ the business. This decision is usually made by the shareholders and/or directors of the company, however, in the case of compulsory liquidation, the creditors of the company can petition the court for the liquidation.
