A company may close down by striking off, liquidating or transferring ownership by a sale of its business in whole or in part.
Voluntary Wind Up
Company can apply for voluntary liquidation provided its solvent ( able to pay its debts)The company can be dormant or is not profitable
Where a company is insolvent and there is an urgent need of placing the company in liquidation, creditor’s voluntary winding up would be applied.
“Insolvency is the inability to pay its debts or has liabilities due in excess of its assets“
For companies which are profitable:
1. Valuation of your business
2. Plan your Exit Strategy
3. Meet with potential successors
4. Choose a Transfer Strategy
5. Plan for Contingencies