May 3, 2011

Closing a Business: Liquidation or Bankruptcy?

Bangkok Post, Corporate Counsellor Column

During these tough economic conditions, closing a business may seem to be the only alternative for a lot of companies. However, doing so is not as easy as removing the sign and closing the doors. A voluntary winding-up of business is an invitation for employee claims, creditor suits and a tax audit. This article examines the two principal means by which a company may formally close its business: liquidation or bankruptcy.