Several factors account for a company's decision to wind-up, liquidate or dissolve its existence. Some business owners or even people in general are of the view that, to wind-up or dissolve a company is a simple task, some believe winding up is when a company stops its business operations or stops using the company or its documents in conducting businesses. Some other people are also of the view that, winding up is when a company closes it physical place of business. None of these are considered to be a business winding up until the appropriate and legal procedures are taken by informing the registrar of companies about the decision to wind up, and finally striking off the name of the company from the list of registered companies.
Before we proceed to look at the processes involved in winding up, liquidating or dissolving a company in Ghana, let us first consider some definitions of the above terms as they are mostly used interchangeably, even though they are completely different procedures. Winding Up, Liquidation and Dissolution are all processes involved in closing a company, however each follows a different set of steps.
We will also look at what will compel a company to wind up, liquidate or dissolve.
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