The liquidation of a company is the process of winding up its operations and distributing its assets to satisfy liabilities. This can occur voluntarily or through a court order when the company is insolvent. The liquidator, appointed to oversee the process, sells the company’s assets, pays off debts, and distributes any remaining funds to shareholders. Once all obligations are met, the company is formally dissolved, ceasing to exist as a legal entity. Liquidation marks the end of a company’s lifecycle, ensuring that all financial matters are resolved and stakeholders are treated fairly in the process.