Liquidating assets in
The court may appoint an official receiver, and one or more liquidators, and has general powers to enable rights and liabilities of claimants and contributories to be settled.
Separate meetings of creditors and contributories may decide to nominate a person for the appointment of liquidator and possibly of supervisory liquidation committee.
There are three types of liquidation process in the UK – two different procedures when a company is insolvent, and a solvent liquidation process called Members’ Voluntary Liquidation (MVL).
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).In some cases, sale at auction is the most appropriate approach in realising the company’s assets; in others, an open market sale may be more suitable.Initially, however, the liquidator will identify all the assets held by the insolvent company, and ensure they’re professionally valued.The assets and property of the company are redistributed.Liquidation is also sometimes referred to as winding-up or dissolution, although dissolution technically refers to the last stage of liquidation.