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Voluntary Liquidation

   Also found in: Dictionary/thesaurus, Legal 0.01 sec.
Voluntary liquidation
Liquidation proceedings that are supported by a company's shareholders.

Voluntary Liquidation
The decision by shareholders in a publicly-traded company to cease operations, sell all assets, and use the proceeds to repay its creditors as far as possible. A voluntary liquidation differs from a bankruptcy, where the company files with a court without taking a vote of shareholders.


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Caerphilly County Borough Council was notified by Bedwas-based Independent Community Transport, trading as CATS and TopKats Travel, that they were due to go into voluntary liquidation at a minute to midnight yesterday.
The domino effect of bad debt is highlighted by the latest figures from the Insolvency Service, which showed that 4,607 companies went into compulsory liquidation or creditors' voluntary liquidation during the fourth quarter of 2008 in England and Wales.
s voluntary liquidation is when the owners of a company, meaning its shareholders, stockholders or partners, choose to liquidate their assets in order to settle their debts.
 
 
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