A liquidator is appointed when a company is placed into liquidation.
The liquidator takes control of all the company’s unsecured assets, which are sold to repay the creditors.
Topics covered include bankruptcy, alternatives to bankruptcy, arrangements that can be made with debtors, liquidation, alternatives to liquidation, examinership and receivership.
They will sell to a company that specializes in store liquidation instead of attempting to run a store closure sale themselves.
The parties who are entitled by law to petition for the compulsory liquidation of a company vary from jurisdiction to jurisdiction, but generally, a petition may be lodged with the court for the compulsory liquidation of a company by: The grounds upon which one can apply for a compulsory liquidation also vary between jurisdictions, but the normal grounds to enable an application to the court for an order to compulsorily wind-up the company are: A "just and equitable" winding-up enables the grounds to subject the strict legal rights of the shareholders to equitable considerations.
The process of liquidation also arises when customs, an authority or agency in a country responsible for collecting and safeguarding customs duties, determines the final computation or ascertainment of the duties or drawback accruing on an entry.
Liquidation may either be compulsory (sometimes referred to as a creditors' liquidation) or voluntary (sometimes referred to as a shareholders' liquidation, although some voluntary liquidations are controlled by the creditors, see below).