Notice of Winding Up

A Notice of Winding Up is a formal announcement indicating that a company can no longer pay its debts and is being liquidated, which means its assets will be sold to settle those debts. This process often begins when a creditor files a petition in court. Once the court approves the winding-up, a liquidator is appointed to manage the sale of assets and distribution of funds to creditors. This notice is crucial because it informs stakeholders, including employees and shareholders, about the company's financial status and the steps being taken to close its operations.