The liquidation of a company means to put an end to the business. If there are no chances of getting profit from the company or the company being almost dormant then the result would be a liquidation of it and it can bring prosperity in that way as well. Though there are so few advantages of voluntary liquidation in number as the company is being sold to pay as many creditors as possible. Still, the shareholders who are willingly liquidating a company can be beneficial in several ways. 

The major advantage of liquidating a company is to protect the directors from wrongful trading allegations. If the director does not deal with creditors properly as if he does not pay the debts of the creditors then the creditors may appoint a case against the director. Then the director and other shareholders decide to liquidate the company in that case sometimes. If the director found guilty of his wrongful trading then he can get advantages to saving himself from the court. 

While deciding to liquidate company shareholders are instructed to different strategies and direction so that they do not take any wrong decisions that will make them personally liable because in time of liquidation if any director found guilty of wrongful trading he can be made liable for all the company’s debts. It also helps to decide wisely and protect from being liable personally. 

As voluntary liquidation does not always require court procedures, it can save people from the court’s dispute. On the other hand, compulsory liquidation must require court policies. If there are no options left without the liquidation of your company but you do not want to do so you can take help from professionals who can use the company’s assets to pay the creditors properly. 

After the liquidation you will not have to deal with the old creditors, you will not have the tension of paying any of them back. You can peacefully sleep without stress. You can start over by opening up a new company and completely forget about the previous company’s stressful works. These are the advantages of liquidating a company voluntarily.