Often directors need the advice and expertise of an insolvency practitioner if a company is to cease and can pay creditors in full with a return to shareholders.
This can be for a number of reasons including retirement of the directors, sale of the company or the purpose for which the company had been incorporated being achieved.
Whilst it may be possible to distribute the funds to shareholders and have the company dissolved it may be more tax advantageous for the company to go into members voluntary liquidation to maximise tax advantages for the company and the shareholders.
