Winding Up

Winding up a company is the same as liquidating a company, selling assets to discharge debts and other liabilities. Any funds remaining accrue to company shareholders. In the UK, there are three kinds of winding-up: creditors’ voluntary liquidation (when a company cannot pay its debts and creditors are involved); compulsory liquidation (when a company is unable to pay its debts and company owners apply to the courts for liquidation); and members’ voluntary liquidation (when a company can pay its debts but owners have opted to liquidate).