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Step 1 - Directors decide to liquidate the company. ... Step 2 ? A licensed insolvency practitioner is appointed. ... Step 3 ? Company assets are identified and creditors dealt with. ... Step 4 ? Creditors paid as far as possible. ... Step 5 ? Completion of the liquidation: Company's name removed from Companies House register.
Liquidation is the process of converting a company's assets into cash, and using those funds to repay, as much as possible, the company's debts. Liquidation results in the company being shut down.
Here's the order of payout during a company's liquidation: Unpaid wages. Unpaid taxes. Secured creditors. Unsecured creditors. Junior unsecured creditors. Preferred stockholders. Common stockholders.
Liquidation is the process of closing a business and distributing its assets to claimants. The sale of assets is used to pay creditors and shareholders in the order of priority. Liquidation is also used to refer to the act of exiting a securities position, usually by selling the position for cash. United States Courts.
In conclusion, liquidation is the procedure of selling a company's inventory at a very major discount. In the liquidation process, the company is brought to an end.