Please can someone correct this statement of Insolvent companies
Liquidation
In a Liquidation the company will be terminated, the director will be dismissed and the contracts of employees will be close. The assets of the firm are selling to pay the depts of the creditors. The liquidator makes no attempt to save the business.

Administration
The administration attempt to rehability the firm and protect the jobs. He is appointed from the court to lead the firm in a orderly manner without further petitions from creditors . He leaves the firm with a provision after he had reconstruction the firm he will leave with a provision and the firm can go back in business.

Question

Please can someone correct this statement of  Insolvent companies
Liquidation
In a Liquidation the company will be terminated, the director will be dismissed and the contracts of employees will be close. The assets of the firm are selling to pay the depts of the creditors. The liquidator makes no attempt to save the business.

Administration
The administration attempt to rehability the firm and protect the jobs. He is appointed from the court to lead the firm  in a orderly manner without further petitions from creditors .  He leaves the firm with a provision after he had reconstruction  the firm he will leave with a provision and the firm can go back in business.

Answer

Liquidation
In a Liquidation,  the company will be wound up , the director will be dismissed and the contracts of employees will be ended. The assets of the firm are sold to pay the debts of their creditors. The liquidator makes no attempt to save the business.

Administration
The Administrator attempts to restructure the firm and protect jobs. He is appointed by the court to lead the firm in a orderly manner without further petitions from creditors . He leaves the firm with a proviso  that after he has restructured the firm,  it can go back into business.

Answers · 1

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