What Are the Different Purposes & Types of Liquidation in the United Kingdom?

There are different types of liquidation that exist in the UK, and each of these forms of liquidation could be used depending on what the business’s circumstances are. Specific circumstances apply to specific procedures, and one of the first things to consider is whether the organisation in question is solvent or insolvent.



A solvent company has the ability to use a Members Voluntary Liquidation in order to close down after they have distributed the correct amount of funds to shareholders. If a company is insolvent, then they are going to either need to enter into Creditors’ Voluntary Liquidation or Compulsory Liquidation.


In this article, we will be having a look at these three different types of liquidation and what their purposes are as well - 

Location: United Kingdom

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