liquidation of companies
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Answer:
Liquidation (or "winding up") is a process by which a company's existence is brought to an end.
First, a liquidator is appointed, either by the shareholders or the court. The liquidator represents the interests of all creditors. The liquidator supervises the liquidation, which involves collecting and realising the company's assets (turning them into cash), discharging the company's liabilities, and distributing any funds left over among the shareholders in accordance with the company's constitution (or the COMPANIES ACT 1993 if there is no constitution). After these steps have been carried out, the company is formally dissolved.
Liquidating a company refers to the procedure in which a limited company is brought to a close by an appointed Insolvency Practitioner (Liquidator).
The company’s assets are then sold (liquidated) and any realisation of revenue is redistributed in order of priority.
The company is struck-off the registrar of companies and this is known as dissolution, which is the final stage of the liquidation process.