Liquidation (Insolvent)

Liquidation is a process for the winding up of a company's affairs to meet the claims of creditors. This will occur when the company can't pay all of its debts in full. The liquidation process is initiated by either the Court or the members (ratified by creditors) and is designed to ensure all of the assets of the company are realised and appropriate investigations and statutory reporting are conducted with a view to distributing the residual assets to the creditors in payment of their debts.