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;
- 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.
- Liquidation of a company with the supervision of court.
- 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.