In order to decide voluntary liquidation 75% (by value of shares) of your shareholders must agree to winding-up the company and you need to call a meeting for the vote.
After the vote, if the winding-up resolution passes, there are 3 steps you need to follow:
- First of all, you need to choose and appoint an authorised insolvency practitioner as liquidator to take charge of the process of liquidating your company;
- Second, you need to send the resolution to Companies House within 15 days.
- Third, you have to advertise the resolution in The Gazette.
- Next, you need to hold a creditors’ meeting within 14 days of the winding-up resolution where another director, the company secretary or the liquidator must also participate. This meeting must be announced at least 7 days before it happens and needs to be advertised in The Gazette.
The meeting of company’s creditors
The meeting addenda includes a statement of affairs including details of the company’s situation and assets as stated in the forms 4.19 (England, Wales or Northern Ireland) or 4.4 (Scotland), questions addressed by the creditors to the company directors about the company’s failure and the possibility of suggesting an alternative liquidator if the creditors consider necessary. The statement must then be given to the liquidator who will send it to Companies House or to the Accountant in Bankruptcy for companies in Scotland.