Introduction

A company, or group of companies, may find itself facing financial difficulty for many
reasons. Poor trading, the loss of an important customer or supplier, excessive cost of borrowings
not covered by earnings, litigation, loss of investor support. Consequently, a company has a large
number of remedies, of which liquidation may be its final course.

Corporate liquidation is a legal process that aims at bringing the corporate life of an
establishment or corporate body to an end. It is essentially a string of processes aimed at
terminating the life of a corporation. During liquidation, the assets of the company need to be
reconciled in an amicable manner after which creditors claims are settled from the resultant
proceeds. "From the date of commencement of the winding up, a liquidator is appointed to conduct
the dissolution of the company and company ceases to be a going concern. The liquidator's role is
to realize the assets of the corporation and settle the liabilities of the company. The actual windup
up may pursue several strategies, for instance, compulsory winding up by court, voluntary winding
up, or winding up subject to supervision by the court.

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