In United Kingdom and United States law and business, liquidation is the process by which a company (or part of a company) is brought to an end, and the assets and property of the company are redistributed.Liquidation is also sometimes referred to as winding-up or dissolution, although dissolution technically refers to the last stage of liquidation.To fully understand the process, first make sure your business is a limited company.A limited company or LTD is set up as a separate legal entity from your personal finances and consists of members who own shares in the company.Once the process has been completed the company will be struck off the company register and cease to exist.The decision to put a limited company into liquidation must be taken by the shareholders at a general meeting.The process of liquidation also arises when customs, an authority or agency in a country responsible for collecting and safeguarding customs duties, determines the final computation or ascertainment of the duties or drawback accruing on an entry.Liquidation may either be compulsory (sometimes referred to as a creditors' liquidation) or voluntary (sometimes referred to as a shareholders' liquidation, although some voluntary liquidations are controlled by the creditors, see below).
A majority of shareholders must vote to adopt a resolution to voluntarily wind up the business.
If that money hasn’t been shared between the shareholders by the time the company is removed from the register, it will go to the state.
You’ll need to restore your company to claim back money after it’s been removed from the register.
You can choose to liquidate your limited company (also called ‘winding up’ a company).
The company will stop doing business and employing people.