An Introduction to Company Insolvency and Liquidation

  • Price: £3.60
  • Published: October 2014
  • Type: Business Information Factsheet
  • Format: PDF

If a company gets into financial difficulties, it can quickly become insolvent and may have to be wound up. This is known as liquidation.

This factsheet defines what insolvency is and explains why companies become insolvent. It describes the various liquidation procedures that apply to private limited companies. It also outlines the responsibilities of the directors of companies in severe financial difficulties and lists alternatives to liquidation, such as informal creditors' agreements, company voluntary arrangements and administration.

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