What is dissolving a business?
Dissolving a business usually means an orderly shutdown of operation, where staff are paid redundancy money, creditors' bills are paid and all orders are fulfilled. After this, the business ceases to trade and is wound up (bank accounts closed, a lawyer certifies that all business is concluded and the regulatory authority is notified).
A business can also be dissolved by bankruptcy, where there is insufficient cash or assets in the business to meet debts and future orders, with a creditor petitioning the courts or the regulatory authority for the business to be wound up and the remaining assets seized or sold to pay debts.
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