CAMFIL HVAC Filtration Solutions

Why Dissolving a Company May be Better than Liquidation

02.12.2021, 23:00

Why Dissolving a Company May be Better than Liquidation

Although it has been a difficult year for many businesses, company directors facing liquidation will often fare better by choosing to dissolve their corporate structure.

In difficult times, it is inevitable some businesses will be forced to close. But is liquidation preferable to a simple dissolution? Today we explain why dissolution may represent the better alternative.


For many business owners, one of the attractive benefits of dissolution is how cost-effective it is. Unlike liquidation, dissolving your company requires little funding. For many business owners, this can bring a huge sense of relief. After all, many business owners close their companies as they no longer have the finances to keep themselves afloat.

Coping with financial worries can be difficult. However, you should always be aware that you’re not alone. There are plenty of organisations out there where you can turn to for help and always use the internet to your advantage. There are plenty of online blogs and articles which can give you some helpful advice for coping with financial worries. Sometimes, it can help to speak to someone who gets it. So, don’t shy away from talking to others in your industry who may be going through the same thing.


When you have decided to close your business, you don’t want the process to then take months on end to complete. This is one of the advantages of dissolution. Once your company is dormant, then the process of strike-off is not time-consuming.

If this is the first time that you are going through dissolution, then it can be difficult to know where to begin. In order to help the process run smoothly, it is advised that you acquire the help of professionals like Future Strategy. For years, they have helped a multitude of business owners dissolve their companies. Having the right people on board can help by taking some of the stress away that comes with dissolution. This is not something that you have to tackle alone.

No Investigation into Directors Conduct

During the dissolution process, there will be no investigation into directors conduct but what does this mean? It means that there is no risk of directors being made personally liable for business debts or being disqualified from acting as directors in the future. This can give a lot of business owners hope. Just because one company has fallen through your grasp that doesn’t mean you cannot make it as a success in your future endeavours. In fact, there is an array of helpful advice out there which can help all business owners get back on track.

Dissolution and liquidation can both feel stressful. However, it can help to look into ways that you can deal with stress to make the process a lot easier. It is important to remember that dissolution can be difficult for any business owner, and you are certainly not alone.

CAMFIL HVAC Filtration Solutions

Staff Reporter covers the latest news, trends and opinion from the facilities management (FM) and corporate real estate (CRE) sectors. The FM market is currently estimated to be worth USD 1 trillion annually and is projected to grow at a compounded annualised rate of approximately 5% between now and 2026.

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