If the directors of a company do not have sufficient funds to keep their company going, or they no longer want the company and do not wish to sell it, they can decide to put the company into liquidation. A specified liquidator is then appointed to the job, their role would be to evaluate the interactions of the company and consider the assets for the advantage of the creditors. The longer the directors take to make the decision of liquidation, they will lessen the stage of rerun to the creditors, but they will also increase the possibility of insolvent trading. Consequently, it is to everyones benefit that the decisions be taken seriously, but also quickly and should see an insolvency practitioner at the soonest chance they get. If it is done early enough, the whole liquidation process can be avoided altogether.

Also, if the shareholders have no assets to keep the company going, it will become insolvent. The best to do in this situation is to seek insolvency advice. The advisor will analyze the situation and tell you exactly what you should do.

There are many different types of liquidation that one could come across, but it would depend on the nature of the company as well as its asset situation.

If your business is having problems and you cannot cope with it, you should speak to a financial adviser, but if you know for sure that you want to let go of the business, liquidation is a simple process and you will no longer have the worry of keeping it going, you will be able to get on with your life. Sure, it is great to be able to run a business, but sometimes things like this happen and you have no control over it and that is when you seek liquidation advice and let it be.