Voluntary liquidations in the UK are divided into two categories. One is the creditors' voluntary liquidation, which occurs under a state of corporate insolvency. The other is the members' voluntary liquidation, which only requires a corporate declaration of bankruptcy. Under the second category, the firm is solvent, but needs to liquidate their assets to meet their upcoming obligations.
Voluntary liquidation can also happen if a vital member of the organization leaves the company and the shareholders decide not to continue operations.
Investment dictionary. Academic. 2012.