In order to understand liquidation of a company, first we should know what is a company, a company is a separate entity in its own right just like the shareholder or the directors. It is director who runs the company. Where shareholders have invested money in the company and have taken shares in return. Company director can also be a shareholder in the company, most small businesses work around the same premises around the world.
So what is liquidation of a company?
As soon as company placed in to liquidation an insolvency practitioner steps in the company and finalise the affairs of the company. An insolvency practitioner sells any assets of the company if any. This doesn’t ends here an insolvency practitioner pay any liabilities with what payments are left if any amongst the company creditors. Once this exercise has been completed the company is then dissolved and removed from the Companies House Register.
For more details watch the video below to find out What is a Company Liquidation:
Filed under: LIQUIDATION
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