The process of shutting down a company can be simply defined as winding up. Liquidation is selling the assets of the business for paying the creditors. Many believe that these two processes are same, but they are two different processes involved in closing a business firm. Voluntary winding up is decided by all the directors that the company is solvent. After the process is done, according to law that company can't exist or perform. Liquidation is making money out of the assets of the company. This money can be used to settle the debts of the firm. And forwarding to that, the company can be closed. This process is done by appointing a liquidator, who is in charge of selling, clearing debts and preparing a report. Compulsory liquidation is when the court orders for dissolving. After winding up and liquidation, the remaining cash would be provided initially with the shareholders and then with the stock holders. Let's understand the topic in detail from power point presentation.

Saket Kumar

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