Liquidation involves winding the company up in an orderly and fair manner as there will be no prospects of resuscitating it. The liquidation fees are paid by the company and are regulated.
The liquidation process is as follows:
- The process leading to liquidation is pretty much the same as that of a judicial management in that a creditor or
the company may apply for involuntary or voluntary liquidation, respectively.
- A liquidator is appointed by the Master of the High Court of Zimbabwe.
- The liquidator is the sole person who presides over the liquidation /sale of the company assets and the proceeds
therefrom are used to pay off creditors in their order of ranking.
- Once a company has been liquidated it cannot be revived.