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Winding Up Meaning

Winding up is a legal process that results in the dissolution of a company. It involves settling outstanding debts, selling assets, and distributing any remaining funds to shareholders in accordance with their rights.

Winding up can be voluntary, initiated by the company’s directors or shareholders, or compulsory, ordered by a court in cases like insolvency.

The process ensures that the company ceases trading responsibly, and that creditors and employees are paid before shareholders.

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