When should I consider putting my company into voluntary liquidation? What are some of the major benefits and drawbacks?

Consider going into voluntary contribution when you feel the company can no longer continue or:

  • You are at stage where you are about to be forced into compulsory liquidation by creditors
  • You’ve recognised that the company is insolvent and no longer able to run
  • If an insolvent company’s shareholders resolve to liquidate the company and appoint a liquidator.


  • By choosing to go into voluntary liquidation you will have a higher level of control (e.g. over timings)
  • You may be able to find your own insolvency practitioner
  • You can also avoid being petitioned through the courts and show to the public that liquidation was a choice, not a forced action by a creditor
  • You no longer need to communicate with the creditors; this is the liquidator’s job
  • You can know what to expect throughout the liquidation process


  • It will be a public process
  • Highly unlikely that there will be any returns for company’s shareholders from the liquidation and proceeds may just go towards repaying creditors
  • Liquidator needs investigate the conduct of the directors leading up to the insolvency stage.