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Winding Up involves the settlement of the accounts and liquidation of the assets of a partnership or corporation, for the purpose of making distribution and dissolving the concern
This procedure is the most serious action that can be taken against a company.
- It applies to a company rather than an individual.
- After the winding up the company ceases to exist.
- If the company is insolvent at the time, not all the creditors get paid in full.
- Rules apply and each creditor gets a percentage of what they are owed if there are insufficient funds to discharge creditors in full.
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