Liquidation occurs when a company is unable to repay there debts, and thus trading insolvent.
There are two types of liquidation.
Court Liquidation is a procedure that appoints a Liquidator through an application to wind up a company. A creditor has to submit an application form for this to happen.
Once this has commenced, creditors can no longer commence any legal action against the company, unless they get written approval from the court.
Unlike Creditors Voluntary Liquidation, it is not a standard procedure to call a final creditors meeting.