This note provides an overview of liquidation. It discusses the purpose of liquidation, the circumstances in which a liquidator may be appointed to a company, the immediate effect of liquidation on the company and key stakeholders, and the role, duties and powers of the liquidator. It also addresses the overall progress of, and major steps involved in, a liquidation (including the assets available to be realised in the liquidation, the types of investigations, examinations and prosecutions that may be conducted by the liquidator or ASIC, the involvement of creditors and the distribution of assets among creditors.

This note also explains the procedure for finalising a liquidation and ultimately deregistering the company.