Liquidation is an extremely formal process involving Directors, Members and Creditors.
Once appointed the Liquidator (Ireland) or Official Receiver / Qualified Practitioner (UK) becomes responsible for the management and ultimate closure or sale of the company.
- Voluntary Liquidation is where the company itself actively seeks to appoint a Liquidator (or Qualified Practitioner) in order to close down the company in an orderly and controlled manner.
- Involuntary or Compulsory Liquidation is where a company is forced into appointing a Liquidator (or Qualified Practitioner) to close down the company. This type of event is most commonly initiated by Creditors and the Liquidator (Official Receiver/Qualified Practitioner) is appointed by the Courts.