Creditors Voluntary Liquidation is a liquidation which is instigated voluntarily by the members of the company at the request of the directors. The company accepts that it is in an insolvent position (unable to pay its debts as they fall due) and takes the necessary steps to liquidate the company and conclude its affairs through the appointment of a liquidator.
The liquidator must oversee the orderly winding up of the company, realise its assets and, if sufficient funds are available, discharge the claims of the preferential and unsecured creditors in accordance with company law.
The liquidator is also obliged to report to the Director of Corporate Enforcement after an investigation into the affairs of the company and the conduct of the Directors.
For creditor voluntary liquidations we can: