When any business can no longer afford to operate, liquidation is a formal process done by an approved firm to ensure the business meets its obligations to shareholders and other stakeholders (e.g. debtors, employees, and Government entities).
In this guide, we take a closer look at Company liquidation to detail what it entails and how to proceed.
What You Need to Know About Liquidation of Companies
What exactly is the liquidation of companies?
In essence, company liquidation is the process of ending the business and distributing the various assets from the business to claimants. Businesses are then able to claim bankruptcy.
It can also involve the selling or auctioning of stock – often at reduced prices. Some important things to know about liquidating a business include the following:
Registered companies in severe financial difficulty can decide to claim bankruptcy. Debts and other stakeholders can be paid using cash made from selling the business.
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