Liquidation

“Liquidation Under the Companies Act 2013,refers to the process of winding up a company’s affairs and distributing its assets among creditors and shareholders. There are two main types of liquidation under the Companies Act 2013: 1.Compulsory Liquidation: Compulsory liquidation occurs when a company is unable to pay its debts and creditors petition the court to wind up the company. The court appoints a liquidator to oversee the process of selling off the company’s assets and distributing the proceeds to creditors. 2.Voluntary Liquidation: Voluntary liquidation occurs when the shareholders of a company decide to wind up the company voluntarily. This can either be a members’ voluntary liquidation, where the company is solvent and can pay its debts in full, or a creditors’ voluntary liquidation, where the company is insolvent and cannot pay its debts in full.”