There are 2 types of Voluntary Liquidation (Winding-Up):
▷ Members’ Voluntary Liquidation (MVL)
▷ Creditors’ Voluntary Liquidation (CVL)
🟢MVL – for company that is able to pay its debts in full within the next 12 months.
🔴CVL – for company that is not able to meet its debts obligations i.e. not able to pay its debts and thus cannot continue its business.
Each method of liquidation has its own procedures. However, both are towards the same objectives –> to sell off/realise the assets and any balance (if available) will be distributed to the creditors and/or shareholders in accordance to the law.
Stay tuned for Court-Ordered Winding Up in the next series.
Kindly contact us at +6010 – 231 9177 for more info.