The liquidator deals with the sale of the assets, agreeing creditors’ claims and working out what return goes to creditors. During this period, the liquidator has to send written annual reports to creditors, along with a final report explaining what has happened.The report includes details of what has been sold, for how much, how it has been paid and how much will be paid back to creditors.With the proceeds of those sales, he can then live as a financially independent person outside the industrial economy.a legal entity - make it nonexistent through legal means.
So if the feudal lord does not convert his assets into whatever can make him thrive in the industrialized world (so, he becomes a business man), his only other options is to sell his properties, that is, to liquidate.
Stages: The purpose of liquidation is to get in, release all the assets and then pay a return to creditors so they get some of their money back.
All the company’s assets will be sold and they will no longer be able to trade.
The company may get more money for its inventory this way, but it may take longer to sell the products and receive payment.
As an alternative, it can sell its entire inventory to a liquidator, who will pay a lower price for the products but will take possession of them and pay for them immediately.
The first is a Creditors’ Voluntary Liquidation (CVL) and is where the directors choose to put the company into liquidation.