The process by which a company dies. Under Part IV of the Insolvency Act 1986, there are three separate procedures - a members voluntary winding up where a company is solvent, a creditors voluntary winding up for insolvent companies and a compulsory winding up by the court. Once the process starts the company is administered by a liquidator who disposes of all assets, and distributes the remainder to members or creditors. When the process is complete, the company is struck off the Companies Register and ceases to exist.
Easyform Glossary of Law Terms. — UK law terms.
See liquidation.USAThe process before dissolution of a business which involves selling all of its assets, paying off creditors, and distributing any remaining proceeds to shareholders.
Practical Law Dictionary. Glossary of UK, US and international legal terms. www.practicallaw.com. 2010.