itorarea.css" />Voluntary & Involuntary Liquidation
A voluntary liquidation will only occur when the company is solvent. A special resolution of the members must be passed before such a winding up can take place. Following this a Liquidator will be appointed. A voluntary winding up can also be initiated by the Creditors of the company.
An involuntary liquidation occurs when parties such as creditors, members or the company itself petitions the High Court to have the company wound up. The prerequisites for compulsory winding up is that the company must be insolvent and they must not be able to pay their debts