What is the difference between dissolving and liquidating a company
Where a company has no assets or liabilities and has not traded for the past 3 months the strike off route, by completion of a simple form at Companies House and a £10 cheque, should enable the company to be dissolved.I say should but if tax returns are not up to date then HMRC may object to the strike off so it is best to obtain clearance prior to going down this route.When considering the most efficient way of winding down and distributing assets from a solvent company the options are limited.A few years ago the favoured route was using an HMRC extra statutory concession (called ESC16) to obtain approval from HMRC to treat the distribution from the company as a capital distribution and then strike off the company.I did think there is not a definition for a reason.The industry’s way of cloaking themselves in a dark cape of mystique, in order to justify charging large fees. In the interest of clarity, the two processes are separate. If the circumstances are right, administration can save a businesses aiding the restructuring of companies.You can choose to liquidate your limited company (also called ‘winding up’ a company).The company will stop doing business and employing people.
The parties who are entitled by law to petition for the compulsory liquidation of a company vary from jurisdiction to jurisdiction, but generally, a petition may be lodged with the court for the compulsory liquidation of a company by: The grounds upon which one can apply for a compulsory liquidation also vary between jurisdictions, but the normal grounds to enable an application to the court for an order to compulsorily wind-up the company are: A "just and equitable" winding-up enables the grounds to subject the strict legal rights of the shareholders to equitable considerations.
The press doesn’t help, the moment a high street company gets into financial trouble there is no end to incessant reporting and speculation.
Yet it’s very rare for a news reporter to actually define the terms. The new year, new start feeling of ‘this is it, the year that business will boom!
It can take account of personal relationships of mutual trust and confidence in small parties, particularly, for example, where there is a breach of an understanding that all of the members may participate in the business, Upon hearing the application, the court may either dismiss the petition, or make the order for winding-up.
The court may dismiss the application if the petitioner unreasonably refrains from an alternative course of action.