Liquidation includes the way toward twisting up an organization’s financial affairs in order to dismantle the company’s structure, attempt proper examinations and decently appropriate.
Liquidation of a company will occur when:
- The company was unable to pay all of its debts when they became due (namely the company was insolvent)
- The company members wanted to end the company’s existence.
A company can be wound up by either a resolution of its members at an appropriate meeting or by the court, for the most part on the application of more creditors of the company.
Once a company is placed into liquidation, a liquidator is appointed. The role of a liquidator is to:
- Find and protect the assets of the company.
- Realise the assets of the company.
- Explore the budgetary issues of the company.
- Make appropriate reports ASIC and creditors.
- Distribute funds to creditors.
- Circulate assets to shareholders, just if an overflow of assetsexists after the sum total of what lenders have been fulfilled; and Ultimately