Liquidation is the most commonly used procedure for insolvent companies.

Liquidation means the end of the road for a company. Its assets are “liquidated” or turned into cash for distribution to creditors. Once the liquidation is concluded the company is dissolved.

Most companies which go into insolvent liquidation have already ceased trading and it is very unusual for a liquidator to carry on trading in order to sell the business or assets as a going concern. This is because the Liquidator, unlike an Administrator, is not an agent of the company, and is therefore personally liable for any transaction that he/she enters

There are two main ways that an insolvent company may be placed into liquidation.

Download further information here Liquidation