Is liquidation same as winding up? The process of selling assets and paying off company liabilities is undertaken by the liquidator under the liquidation process. So, liquidation is a part of the wind-up process of a company. Liquidation is a process in which the company is brought to an end. Also, the assets and property of the company are redistributed to the creditors and owners. Liquidation is also referred to as winding-up or dissolution, although dissolution technically refers to the last stage of liquidation. Winding up is a synonym for closing, but usually meaning closing as the result of insolvency. So to ‘wind up' a company means to follow legal due process for shutting it down, usually via liquidation. Liquidation in finance and economics is the process of bringing a business to an end and distributing its assets to claimants. It is an event that usually occurs when a company is insolvent, meaning it cannot pay its obligations when they are due. General partners are subject to liquidation.

Nazrin Farzana

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