Succession planning and business transfer

Voluntary liquidation involves dissolving all of a company's assets, paying off employees in accordance with redundancy law and closing the business down.

It is usually only considered when all other options have failed (eg when no one is interested in buying the business or taking over its management).

The liquidation commences when the members pass a resolution in a general meeting to wind up the company. A majority of members must make a statutory declaration of solvency in the five weeks before a resolution to wind up the company is passed.

There can be quite substantial expenses involved, and so voluntary liquidation is unlikely to provide the best returns for business owners who are looking to raise cash.