Liquidation
A legal process for winding up a company or close corporation, collecting assets, dealing with creditors, and ending or resolving the entity's affairs.
Definition
Liquidation may be voluntary or court-driven, depending on the entity and facts. The review should check solvency, creditors, assets, demands, court papers, tax position, employee issues, director conduct, business rescue options, and whether liquidation is being used as an enforcement route.
Key takeaways
A legal process for winding up a company or close corporation, collecting assets, dealing with creditors, and ending or resolving the entity's affairs.
Corporate Law
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Related legal problems
This glossary provides general information only and does not constitute legal advice.
Common situations
Company liquidation
Creditor application
Business rescue versus liquidation
Related resources
Resources and guides
Insolvency Document Pack
Insolvency Document Pack: prepare Creditor list, Debtor list, Asset list and identify missing records before legal advice.
InsolvencyClient Document PackCivil Litigation Consultation Pack
Civil Litigation Consultation Pack: prepare Summons, Notice of motion, Pleadings and identify missing records before legal advice.
Civil ProcedureChecklistCommercial Law Checklist
Commercial Law Checklist for preparing documents, facts, dates, and questions connected to corporate law.
Corporate LawFAQs
Liquidation FAQs
What does Liquidation mean?
A legal process for winding up a company or close corporation, collecting assets, dealing with creditors, and ending or resolving the entity's affairs.
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