What is voluntary dissolution
When a company chooses to close down and can be removed from the Companies House Register, this is called voluntary dissolution. In order for voluntary dissolution to be achieved, certain conditions must be met.
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Voluntary dissolution explained
Voluntary Dissolution is a procedure formed by the management of a company, including the shareholders, initial directors and members or owners of the company, whereby the company’s existence becomes dissolved or terminated, by choice of the above management members. In order to achieve voluntary dissolution, a number of conditions must be met. Provided all of the conditions are met, then the company may be removed from the Companies House Register of the jurisdiction that the company is registered in.
Specific requirements are prescribed that must be adhered to in order for a company to go into voluntary dissolution. The proposed dissolution must be completely justified by the board of directors within a report. When a company chooses to go into voluntary dissolution, a report must be produced that features a statement of the most recent assets and liabilities of the company. A list of final accounts must be sent to the Companies Registrar, after which the courts will be notified of the dissolution. All business activity must be completely finished prior to the requested dissolution being approved.
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