What is a liquidation policy?

Liquidation process is initiated by shareholders on voluntary basis or by creditors after obtaining court permission on compulsory basis.This also occurs when the business can't pay its debt or may be an entrepreneur want to retire from the business.This process involves :court order liquidation,or pass of voluntary liquidation,creditors pass resolution at a meeting,liquidator notifies the company,advertisement on liquidation is made,creditors meeting is held to confirm liquidator,administration of liquidation that involves calling of claims and payment of dividends, a final report is sent to creditors and the company removed from companies register.