2. Arrange liquidation with your creditors
A director can propose a company stops trading and be liquidated (‘wound up’) if:
- the company can’t pay its debts (it’s ‘insolvent’)
- enough shareholders agree
Get shareholders’ agreement
You must call a meeting of shareholders and ask them to vote.
75% (by value of shares) of shareholders must agree to the winding-up to pass a ‘winding-up resolution’.
Once the resolution is made there are 3 steps you must follow.
Send the resolution to Companies House within 15 days.
Advertise the resolution in The Gazette within 14 days.
Your responsibilities as a director will change.