1
Q
What is Liquidation?
A
The process of closing a business and distributing its assets to repay creditors eventually dissolving the business
2
Q
What is the process of Liquidation?
A
- Company is unable to repay debts
- Often following a creditor statutory demand
- Applications to the high court
- Proceedings are advertised and called in open court
- If the court is not satisfied the company can not repay its debts a liquidator is appointed
- Takes control of company assets, sells them and distributes the proceeds to creditors based on priority
3
Q
The difference between bankruptcy and Liquidation
A
Liquidation applies to companies, while bankruptcy applies to individuals (or businesses under certain legal systems).
4
Q
A
