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Liquidation

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA LW Exams › Liquidation

  • This topic has 1 reply, 2 voices, and was last updated 1 year ago by Vijay.
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  • March 14, 2021 at 2:55 pm #614417
    Faizahmad1009
    • Topics: 33
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    Sir, Vijay

    Can you please explain the two types of voluntary liquidation?
    Can you please also explain compulsory liquidation?

    March 20, 2021 at 9:33 pm #614851
    Vijay
    • Topics: 0
    • Replies: 258
    • ☆☆☆

    Hi

    Compulsory Liquidation is when the Court makes an order to wind up the company. So there is a court hearing and a court order.

    Voluntary Liquidation is when the shareholders pass a special resolution to wind up the company not the court!

    2 Types of Voluntary- MVL and CVL

    MVL – the company is solvent
    CVL the company is insolvent.

    Does this help clarify?

    Kind regards,

    Vijay

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