An intrinsic part of the liquidator’s role would be to investigate all company affairs should they need to recover any of the company’s assets that have been misplaced or sold at less than market value from the company as the liquidator is at liberty to reverse these transactions.
Insolvency You may be forced to consider liquidation because your company is no longer solvent.
If the company remains solvent it can still be controlled by the directors of the company but when it is insolvent, you can place the company in control of a liquidator who will then deal with the aspects of the liquidation or winding up of the company.
Turning assets into cash is typically done in order to pay off a variety of debts, depending on investments made into the business by creditors, or loans taken out in growing the business, for example.
Liquidating leads to dissolving the company, and bringing all activity to a close.
Look, if you as directors have acted naively you may not know that you have broken these laws, but now you do know, it is vital to ensure that you protect yourself as a director by acting quickly to cease trading and put the company into voluntary liquidation; or consider a company voluntary arrangement if the company is VIABLE if the problems are solved.
In short, liquidation usually means, the company's trading stops and it's assets are turned into cash or "liquidated".If the company is deemed insolvent any remaining assets will be sold in order to pay off any remaining creditors.Any amount remaining after all necessary payments have been made is then distributed amongst any shareholders.In this case, members’ voluntary liquidation means that the business is in fact still able to make its payments on time, but it is the choice of the business owner or partners to wind-up.Creditors’ voluntary liquidation This occurs when the director of a company realises that the business is not able to pay off its debts and can begin the process of liquidation after conducting a vote with the shareholders. This nonsense just highlights that people make things up all the time about subjects they have little knowledge of.