Voluntary Liquidation

A process under Section 59 of IBC where a solvent corporate person chooses to wind up its affairs by passing a special resolution (or 3/4 majority in case of LLP) and appointing a liquidator to realise assets and distribute proceeds.

Voluntary Liquidation is governed by the Insolvency and Bankruptcy Code, 2016 and regulated by IBBI. Understanding this concept is essential for ensuring regulatory compliance, avoiding penalties, and making informed corporate decisions in India.

Voluntary Liquidation is relevant for company secretaries, compliance officers, chartered accountants, corporate lawyers, board members, and all professionals dealing with IBC regulatory matters in India.