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There are three types of liquidation/close down in the UK: Now read guides below or click on Liquidation Flowchart for a quick guide.NEW March 2016 – Complete Guide to Creditors Voluntary Liquidation – 50 page PDF free to download He or she runs the liquidation, fills out all the forms, calls all meetings and investigates the conduct of the directors before the liquidation. He then works out the debts and pays the creditors from the assets, if there were any.You can get on with a new business or job, the company is closed, leases cancelled and all the staff made redundant.Liquidation usually means the company’s trading stops and it’s assets are turned into cash or “liquidated”.We will make sure that Liquidation is the best solution for you (we do have a duty of care you know). We will need a few basic details to get the Liquidation process started.Step 3 – We will now write to all your creditors, Typically, within 48 hours, we will let them know the situation.When a company is being liquidated because it is insolvent, the liquidator has a duty to all the company’s creditors.The liquidator’s role is to: Except for lodging documents and reports required under the Corporations Act, a liquidator is not required to do any work unless there are enough assets to pay their costs.

Some may turn up, generally it is to ask questions of the Liquidator.

If the company is without sufficient assets, one or more creditors may agree to reimburse a liquidator’s costs and expenses of taking action to recover further assets for the benefit of creditors.

In this case, if additional assets are recovered, the liquidator or particular creditor can apply to the court for the creditor to be compensated for the risk involved in funding the liquidator’s recovery action.

The three types of liquidation are: A creditors' voluntary liquidation is a liquidation initiated by the company.

Creditors' meetings during liquidation Voting at a creditors’ meeting How will I get paid in a liquidation? It involves realising the company’s assets, cessation or sale of its operations, distributing the proceeds of realisation among its creditors and distributing any surplus among its shareholders.