Liquidation is the process by which companies are wound-up, bringing their life to an end.
The liquidator is the person appointed to supervise and implement the company's winding up.
The Companies Acts provide for three different types of liquidation, details of which are below:[1] An MVL is the process of winding up a company that has sufficient assets to repay all of its creditors within one year of the liquidator's appointment.
In an MVL the liquidator is appointed by and reports to the company's members / shareholders.
A CVL is the process of winding up a company that does not have sufficient assets to repay all of its creditors within one year of the liquidator's appointment.