It is a common misconception that closure means failure, but directors increasingly choose to dissolve in good condition, either because the industry has changed or they simply fancy something new.
The first thing to understand about company closure is the distinction between solvency and insolvency. If the company is solvent, there is much more flexibility when dissolving it and the directors have much more control.
If the company is able to meet its financial commitments long-term and pay all creditors, in full, within a 12-month period, it is classed as solvent.
Of course, there are exceptions. Many businesses run into problems, when…
Read the full article at: https://www.accountancyage.com/2019/03/13/checklist-of-steps-to-close-a-business-and-declare-insolvency/