A company, being the creation of the law, dissolves only through the process of law. The Companies Act provides for dissolution of a company by winding up or without winding up or by striking the defund company’s name off the register. This chapter discusses the dissolution of the company by winding up.
A company is a creation of law, and it comes to an end by law. As stated above, one of the alternatives.
To dissolve a company through the process of winding up or liquidation. Liquidation is the process of law where-by the corporate life of a company comes to an end. A company’s winding up means ascertainment of its rights and liabilities, the realizing of its assets, the settlement of the claim of its creditors, and the distribution of the residue to its member.