Insolvency is the condition of a person who is unable to pay his debts as they fall due, or in the usual course of trade and business.
This is the process whereby the company gives up its business, sells off its assets , pays its debts and distributes whatever surplus remains amongst its members or otherwise as its constitution may provide.
There are three modes in which a company may be wound up and these are: Compulsory winding up by the court, Voluntary winding up by either members or creditors, and Winding up under the supervision of the court.
No. The company only ceases to exist after the winding up procedure has been completed.
A liquidator is responsible for the management of the company and its assets during the period of winding up.