Company has ceased trading and is no longer required.

Company has pre-CGT assets to distribute.

Resolves disputes between directors and shareholders.

Can be used to finalise affairs if previous directors unable or unwilling to continue as directors of the company.

A simple cost effective means of finalising the company's affairs and distributing company's assets.

Does not necessarily entail realisation of assets, as assets can be distributed in specie.

Can be a tax effective way of disbursing the assets to the shareholders.

Company must be solvent.

A method to wind up the affairs of the company and return surplus funds to shareholders.

All liabiltiies of the company are paid in full.

Liquidator realises the assets of the company as necessary and distributes the funds and or assets to creditors and shareholders.