- Voluntary Liquidation
- A corporate liquidation that has been approved by the shareholders of the company. Voluntary liquidations stand in contrast to involuntary liquidations, which are a result of Chapter 7 bankruptcy. The shareholder vote allows the company to liquidate its assets to free up funds to pay debts.
Voluntary liquidations in the UK are divided into two categories. One is the creditors' voluntary liquidation, which occurs under a state of corporate insolvency. The other is the members' voluntary liquidation, which only requires a corporate declaration of bankruptcy. Under the second category, the firm is solvent, but needs to liquidate their assets to meet their upcoming obligations.
Voluntary liquidation can also happen if a vital member of the organization leaves the company and the shareholders decide not to continue operations.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
voluntary liquidation — liquidation proceedings that are supported by a company s shareholders. Bloomberg Financial Dictionary Usually relates to an insolvent company and is started by a resolution of its shareholders. HM Customs & Revenue Glossary * * * voluntary… … Financial and business terms
voluntary liquidation — A non court based procedure to wind up or liquidate a company. There are two types of voluntary liquidation: • members voluntary liquidation of solvent companies; and • creditors voluntary liquidation of insolvent companies. Practical Law Di … Law dictionary
voluntary liquidation — voluntary winding up See: creditors voluntary liquidation, members voluntary liquidation … Accounting dictionary
voluntary liquidation — voluntary winding up See creditors voluntary liquidation; members voluntary liquidation … Big dictionary of business and management
voluntary liquidation — liquidation of a company according to the request of the company s shareholders … English contemporary dictionary
voluntary liquidation — The closing of a solvent bank and the liquidation of the business pursuant to the vote of the stockholders holding a certain percentage (usually 2/3) of the shares of the bank. 10 Am J2d Banks §828. See voluntary dissolution … Ballentine's law dictionary
voluntary liquidation — /ˌvɒlənt(ə)ri ˌlɪkwɪ deɪʃ(ə)n/ noun a situation where a company itself decides it must close and sell its assets … Dictionary of banking and finance
members' voluntary liquidation — Under sections 89 and 90 of the Insolvency Act 1986, liquidation of a company which is able to pay or provide for all of its debts in full within a twelve month period. The procedure is commenced by a resolution of the shareholders. Easyform… … Law dictionary
creditors' voluntary liquidation — Under section 90 and Chapter IV of Part IV of the Insolvency Act 1986 liquidation of a company which is unable to pay its debts in full within a period of twelve months which is commenced by a resolution of shareholders although under the control … Law dictionary
creditors' voluntary liquidation — CVL The winding up of a company by special resolution of the members when it is insolvent. A meeting of creditors must be held within 14 days of such a resolution and the creditors must be given seven days notice of the meeting. The creditors… … Accounting dictionary