Members’ Voluntary Winding Up
An LLP may decide to wind up its affairs voluntarily if the partners are of the opinion that the LLP will be able to pay its debts in full within 12 months after the commencement of the winding up. The LLP has to appoint a liquidator or provisional liquidator to wind up its affairs and file the necessary notifications required under the LLP Act. For more details, please refer to the LLP Act or seek professional advice.
Creditors’ Voluntary Winding Up
An LLP may decide to opt for creditors’ voluntary winding up if its partners are of the opinion that it cannot by reason of its liabilities continue its business. The LLP will have to convene a meeting of its creditors to allow them to consider its proposal for the company to be wound up. If the creditors agree, the LLP has to appoint a liquidator or provisional liquidator to wind up its affairs and file the necessary notifications required under the LLP Act. For more details, please refer to the LLP Act or seek professional advice.
Compulsory Winding Up
An LLP may be wound up under an Order of the Court under certain circumstances e.g. the LLP is unable to pay its debts. The Court may appoint a liquidator to wind up the affairs of the LLP. Where no liquidator is appointed by the Court, the Official Receiver shall be the liquidator of the LLP. The liquidator will file the necessary notifications required under the LLP Act. For more details, please refer to the LLP Act or seek professional advice.