People sometimes describe liquidation as "the owner lost everything," but the actual legal and financial process is much more structured. Assets are dealt with according to insolvency and company law, and creditors' claims have to be considered in order of priority.
Source: Insolvency Act 24 of 1936
Frequently Asked Questions
What happens to company assets during liquidation?
They are dealt with by the liquidator in accordance with the applicable law.
Are all creditors paid equally?
No — the law establishes different categories and priorities of claims.
Does liquidation automatically make shareholders personally responsible for every company debt?
No — the company's separate legal personality generally remains important, although personal liability can arise in particular circumstances.