What is Liquidation (winding-up)?
The formal process of closing a company by appointing a liquidator to sell its assets, pay creditors and then dissolve it.
A solvent company that can pay all its debts can be wound up voluntarily by its shareholders under section 80 of the Companies Act. An insolvent company is wound up under the insolvency provisions of the old Companies Act of 1973, which still apply, either voluntarily by creditors or by court order.
The Master of the High Court appoints and oversees the liquidator. Liquidation is used instead of deregistration when a company still has assets to distribute or debts it cannot pay.
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Liquidations