Modes of Winding Up

Modes of Winding Up You may liquidate your company and use the company assets to pay off its debts, any money left goes to shareholders. There are three modes of winding up;
  1. Voluntary winding up which can either be;
  • Member’s voluntary liquidation – this is for a solvent company (can pay its debts) initiated by the company members.
  • Creditors’ voluntary liquidation – this is for an insolvent company (can’t pay its debts) initiated by members of the company after meeting the creditors of the company.
  1. Liquidation of company with the supervision of court.
  2. Compulsory Liquidation - Liquidation by court.
    Note;  All Financial Institutions are governed by the Central Bank- Bank of Uganda and initiation of voluntary winding up should be by the approval of the Central Bank.. See provisions of the Financial Institutions Act, 2004; Sections 97 and 98.