Voluntary Winding-Up
/ˈvɒlənˌtɛri ˈwaɪndɪŋ ʌp/
Definitions
- (n.) A company-initiated process to liquidate assets and dissolve the company, undertaken voluntarily by its members or creditors.
The directors announced a voluntary winding-up following the company's insolvency.
- (n.) A form of company liquidation that is initiated without a court order, usually by shareholders' resolution or by creditors under statutory provisions.
The shareholders passed a resolution to commence voluntary winding-up to pay off debts.
Forms
- voluntary winding-up
Related terms
See also
Commentary
Distinguish between members' voluntary winding-up (solvent companies) and creditors' voluntary winding-up (insolvent companies); precise terminology is critical for compliance and reporting.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.