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 a 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.