Insolvency You may be forced to consider liquidation because your company is no longer solvent.
If the company remains solvent it can still be controlled by the directors of the company but when it is insolvent, you can place the company in control of a liquidator who will then deal with the aspects of the liquidation or winding up of the company.
It is a way for a business that has run out of funds to cover any remaining debts.
The main reason a business would choose to liquidate their assets is due to insolvency.
Liquidation generally refers to the process of selling off a company’s inventory, typically at a big discount, to generate cash.