Liquidation Proceedings

Liquidation proceedings refer to a legal process where a company's assets are sold off to pay debts when it can no longer continue operating. This often occurs during bankruptcy situations. The process typically involves appointing a liquidator, who is responsible for assessing the company's assets, settling any outstanding obligations, and distributing remaining funds to creditors. Once the liquidation is complete, the company ceases to exist as a legal entity. This procedure aims to ensure fair treatment of creditors and an orderly wind-down of the business's financial affairs.