ABSTRACT
The procedures we described in earlier chapters generally affect the business of a company and how it operates; and either the company will carry on afterwards or it will have to go into liquidation. Liquidation means the end, the death, cremation and scattering of the ashes of a company. Once liquidation is complete, the company is automatically dissolved and it no longer exists. As the term suggests, the purpose of liquidation is to liquidate the assets: turn them into cash and distribute the cash (or what is left after meeting the costs of the liquidation) among the creditors and shareholders in the prescribed order.
