Also known as CVL, this is when the Directors decide that the Company can no longer continue and place it into liquidation before creditors do. Whilst creditors have the ultimate say in who is appointed liquidator, the company can "nominate" an IP for the role
The liquidator then realises the assets for the benefit of all creditors. .The liquidator will also investigate and report the actions of the directors prior to the liquidation, and at the end the company will be struck off.