Liquidation refers to the procedure in which a limited company is brought to a close by an appointed Insolvency Practitioner Liquidator. The company is struck-off the registrar of companies and this is known as dissolution, which is the final stage of the liquidation process.
An administrative receiver can be appointed by a creditor. The receiver must be an insolvency practitioner IP.
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One of the harsh realities of starting your own company is that it may not survive. For various reasons, some companies experience financial trouble to the point where they can no longer pay their debts as they fall due.
It is an event that usually occurs when a company is insolvent , meaning it cannot pay its obligations when they come due. As company operations end, the remaining assets are used to pay creditors and shareholders, based on the priority of their claims.
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