The Different Types of Company Liquidation
Members’ Voluntary Liquidation or MVL – With this type of liquidation, company shareholders decide to voluntarily wind up the company and sell its assets to satisfy outstanding debts.
Creditors’ Voluntary Liquidation or CVL – Is when a privately owned company ends operations and sells off its assets to repay creditors.
Compulsory Liquidation – This type of business liquidation is forced upon a company when creditors successfully petition the courts for redress. This type of imposed liquidation is the most legally troublesome for company directors.