Types of Liquidation
Liquidation can be categorized into two main types:

1. Compulsory Liquidation (also known as Court-Ordered Liquidation)
2. Voluntary Liquidation 

Compulsory Liquidation

a) Insolvency (Inability to Pay Debts)
This occurs when one or more parties file a court petition to liquidate a company that is facing bankruptcy. The petitioner may be a creditor, a contributory (shareholder), a representative of a deceased contributory, or a bankruptcy trustee. The petitioner must state the reason for liquidation under Section 465(1) of the Companies Act 2016.

b) Other Reasons
Besides insolvency, the court has the authority to order a company to be liquidated for other reasons. For example, the court may order liquidation due to irreparable disputes among shareholders, even if the company is not insolvent. This application must be made under Section 465 of the Companies Act 2016, specifying the reason for liquidation.

Voluntary Liquidation

a) Members’ Voluntary Liquidation (MVL)
MVL is conducted under Section 443 of the Companies Act 2016. The company’s board of directors must declare that the company is financially solvent and able to settle all its debts within 12 months from the commencement of liquidation.

b) Creditors’ Voluntary Liquidation (CVL)
CVL occurs when the board of directors declares that the company is insolvent and unable to continue operations. A meeting involving the company and all creditors must be held within one month of the declaration. This declaration must be submitted to the Companies Commission of Malaysia (SSM) and the Insolvency Department.

清盘的模式
清盘有两种类别：
强制性清盘 (也被称为法院命令清盘)
自愿性清盘 

强制性清盘

1. 破产状态 (无法偿还负债)
   这是有一位或多位当事人向法院申请清盘将面临破产的公司。当事人可以是债权人，缴费人，去世的缴费人的代表或是破产的受托人。这种类型的清盘要求呈请人根据2016年公司法令第465(1)项陈述清盘原因。

b) 其他理由
除了破产外，法院也有权以其他理由将一间公司清盘。法院可能以因破坏双方股东关系的理由命令公司清盘（就算该公司没有破产）。这方法在申请时必须根据2016年公司法令第465项陈述要公司清盘的理由。
 
自愿性清盘

1. 股东自愿性清盘 (“MVL”)
   MVL是根据2016年公司法令第443项所提及的方式将公司清盘，该公司的董事层必须确定公司有能力在开始清盘后的12个月内偿还所有债务。

b) 债务人自愿性清盘 (CVL)
CVL是当董事层宣布公司在资不抵债的情况下无法继续经营而将公司清盘。公司与所有债权人将会在声明后的1个月内召开会议。这项声明必须呈交给公司注册局与清算部门。