Liquidation of companies (2)
Types of liquidation of companies
Creditor liquidation (active)
The directors and shareholders of the company jointly decide to go into liquidation and appoint a liquidator to use the existing assets of the company to repay the creditor's debt.
Shareholder liquidation (active)
In the event that the company is not insolvent, the shareholders voluntarily liquidate the company.
Court liquidation (passive)
Debt can be considered insolvent if the debt is not paid, and creditors can force the company into liquidation through court.
Interim liquidation (passive)
If a shareholder considers that a director has not acted in the best interests of the shareholder or that the company faces a major management dispute, the shareholder may temporarily liquidate the company by means of a court of law until the director is removed or resolved.
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