Company liquidation is a legal process that involves the appointment of a liquidator to bring an end to the affairs of a limited company. Upon completion of the process, the company ceases to exist. It's important to note that liquidation doesn't guarantee payment to creditors of the company. The primary aim of liquidation is to ensure that all the company's affairs are properly dealt with.
This involves a number of steps, including the completion, transfer, or termination of all company contracts (including employee contracts), cessation of the company's business, resolution of any legal disputes, sale of any assets, collection of any money owed to the company, and distribution of funds to creditors. Additionally, any surplus funds after the repayment of all debts and share capital can be distributed to the shareholders.