What are the steps involved in the liquidation process of a company?

• Initiation
  Liquidation typically begins with a decision by the company’s board of directors or shareholders to cease operations and wind up the business due to insolvency, bankruptcy, or voluntary dissolution.
• Appointment of Liquidator
  The company appoints a liquidator, either through court appointment or voluntary selection, who takes charge of managing the liquidation process. The liquidator’s primary duty is to sell off the company’s assets and distribute proceeds to creditors according to a predetermined hierarchy.
• Asset Realization
  The liquidator identifies, values, and sells the company’s assets, which may include real estate, equipment, inventory, and intellectual property. The proceeds from asset sales are used to settle outstanding debts and liabilities, including payments to secured and unsecured creditors.
• Debt Settlement
  The liquidator prioritizes debt repayment according to the legal hierarchy of creditors, which typically begins with secured creditors, followed by unsecured creditors, and finally shareholders. Any remaining funds after settling debts may be distributed to shareholders according to their ownership stakes.
• Dissolution
  Once all assets have been liquidated, debts settled, and any remaining funds distributed, the company undergoes formal dissolution, wherein its legal existence ceases, and it is removed from the corporate register. This marks the official conclusion of the liquidation process.