The advantages and disadvantages of Voluntary Liquidation

Once a company is closed, any debt which cannot be repaid must be written off by the creditors.

This leaves a clean slate and opportunity for the directors to start afresh.
The directors maintain control over the closure process in so much as they have the opportunity to appoint a liquidator.

The liquidator could be changed by the creditors but this would be unusual.
If they wish, the directors and investors have the opportunity to focus their efforts and investment cash on growing a new company rather than trying to "flog a dead horse".

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The liquidator will report on the conduct of the company directors. If they are accused of allowing the company to trade while insolvent, this could lead to their disqualification and liability for the company’s debt.
Where the company is insolvent, creditors unlikely to be paid. This in turn may have a devastating impact on their business and customers.
The closure of the company will result in the employees being made redundant. There is no guarantee that they will be paid their full redundancy entitlement if the company is insolvent.

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