Liquidation is a process where the company’s assets are seized and realized, with the resulting proceeds used to pay off its debts and liabilities.. Upon the completion of the liquidation, the company goes into dissolution and it ceases to exist. The purposes of a liquidation are to ensure a just distribution of the company's assets among creditors and contributories and to terminate the company's existence by its eventual dissolution. Winding up a company is a legal process governed by the business and corporate laws of each state and the company’s governing documents (articles of association, operating agreement, articles of incorporation, bylaws or operating agreement). It is a process involved in dissolving the company and before liquidation is on the horizon.

Vikrant Ojha

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