3. Members’ voluntary liquidation

You may choose members’ voluntary liquidation if your company is ‘solvent’ (can pay its debts) and:

  • you want to retire
  • you want to step down from the family business and nobody else wants to run it
  • you don’t want to run the business any more

There are 6 steps to voluntary liquidation.

  1. Download a ‘Declaration of solvency’ (form 4.70) or, if your company is in Scotland, ask the Accountant in Bankruptcy for form 4.25.
  2. Fill in the declaration – it must be signed by the majority of directors.
  3. Call a general meeting with shareholders at least 5 weeks later and pass a resolution for voluntary winding up.
  4. Advertise the resolution in The Gazette within 14 days.
  5. Appoint an authorised insolvency practitioner as a liquidator who will take charge of winding up the company.
  6. Send your signed form to Companies House or the Accountant in Bankruptcy (for Scottish companies), within 15 days of passing the resolution.

    Companies House
    Crown Way
    Cardiff CF14 3UZ

When the liquidator is appointed they take control of the company. Your responsibilities as a director will change.

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