Also known as winding up. An insolvency procedure under which the assets of a company are realised and distributed to creditors by the liquidator, in the order provided for in the Insolvency Act 1986 and the Insolvency (England and Wales) Rules 2016 (SI 2016/1024). There are two modes of liquidation: compulsory liquidation following a court order, and voluntary liquidation instigated voluntarily by the members of the company. Unlike the insolvency procedure administration, liquidation always results in the dissolution of the company.

For further information, see Practice note, Liquidation: overview.