There are essentially two types of winding up. There is compulsory winding up which is by court order, and voluntary winding up which is initiated by the members of the company. Voluntary winding up may be further split into two types:
Â a members’ voluntary winding up, largely under the control of the members where the directors swear a statutory declaration of solvency; and
Â a creditors’ voluntary winding up, largely under the control of the creditors where the directors have failed to swear a statutory declaration of solvency.