Reasons for Closing a Company
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Persistent financial losses
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Unmanageable debts
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Business inactivity
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Retirement or exit strategy
Methods to Close a Company
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Voluntary Strike-Off – Suitable for debt-free, inactive companies.
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Creditors’ Voluntary Liquidation (CVL) – Formal process for insolvent companies.
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Compulsory Liquidation – Court-ordered closure initiated by creditors.
Director Responsibilities During Closure
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Maintain accurate financial records
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Avoid wrongful trading
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Notify creditors
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Follow legal obligations
Conclusion
Professional guidance ensures a smooth, legally compliant closure, protecting both directors and stakeholders.