Winding Up

Winding up refers to the process of closing a business or corporation, where its operations are ceased, and its assets are liquidated. This typically happens when a company is insolvent or chooses to dissolve voluntarily. During winding up, the company's debts are paid off using the proceeds from selling its assets, and any remaining money is distributed to shareholders. The process is handled by a liquidator, who ensures that everything is done according to legal requirements. Ultimately, winding up leads to the company's formal cessation and removal from the register of companies.