TYPES OF VOLUNTARY

WINDING UP
 VOLUNTARY WINDING UP

• THE COMPANIES ARE USUALLY WOUND UP VOLUNTARILY AS IT IS AN EARLIER

PROCESS OF WINDING UP.
• IN VOLUNTARY WINDING UP THE COMPANY ON ITS CREDITOR ARE LEFT TO
SETTLE THEIR AFFAIRS WITHOUT GOING TO A COURT, ALTHOUGH THEY MAY
APPLY TO THE COURT FOR DIRECTIONS OR ORDERS, AS AND WHEN NECESSARY.
• ONE OR MORE LIQUIDATORS ARE TO BE APPOINTED BY THE COMPANY IN
GENERAL MEETING FOR THE PURPOSE OF WINDING UP THE AFFAIRS AND
DISTRIBUTING TH EASSETS OF THE COMPANY
 TYPES OF VOLUNTARY WINDING UP

• MEMBERS VOLUNTARY WINDING UP

• CREDITORS VOLUNTARY WINDING UP
 MEMBERS VOLUNTARY WINDING UP

• THE COMPANY MEMBERS MAY DECIDED TO WIND UP THE COMPANY.

• IT CAN BE BECAUSE THEY HAVE SOLD THE BUSINESS OR THE COMPANY ISN’T
THE TRADING.
• THE KEY IS THAT THE COMPANY MUST BE SOLVENT.
• IT MEANS THE COMPANY MUST BE ABLE TO PAY ITS DEBITS.
• EXAMPLE : SUPPOSE ABC COMPANY WAS A SUBSIDIARY IT WAS MADE FOR THE
PURPOSE OF ONE CONSTRUCTION PROJECT. AFTER THE COMPLETION OF THE
PROJECT ,THE MEMBERS AGREE TO WIND UP THE BUSINESS.
 CREDITORS VOLUNTARY WINDING UP

• THE COMPANIES CREDITORS CAN ALSO TRIGGER A WINDING UP.

• IT HAPPENS WHEN THE CREDITORS DON’T RECEIVE THEIR DUES.
• THE LIQUIDATION HAS TO ASSESS THE COMPANIES ASSETS AND DEBT
OBLIGATIONS CAREFULLY.
• ALSO THE COMPANY IS INSOLVENT AT THIS TIME,
• THE CREDITORS HAVE TO PROVE THEIR CLAIMS.
• THE ASSETS SALES ARE DISTRIBUTED PROPORTIONALLY.
THANK YOU