If there are insufficient funds to pay all creditors (INSOLVENCY), preferential creditors are paid first (for example, the INLAND REVENUE for tax due), then ordinary creditors pro rata.
If there is a surplus after payment of all creditors, this is distributed pro rata amongst the shareholders of the company.
The liquidator should only take steps under section 230 if the corporate debtor or its business is viable and it is more suitable than selling the corporate debtor as a going concern.
It should be done within a stipulated time frame failing which the corporate debtor should be liquidated.
Where you send the petition depends on how much ‘paid-up share capital’ your company has.
Submit the petition online if it’s one of these courts: You or your solicitor must be at the court hearing. If the court gives a winding-up order, the court will put an official receiver in charge of the liquidation. A copy of the winding-up order will be sent to your company’s registered office.
The person appointed as liquidator, either by the company directors/shareholders or by the creditors, sells off the company's ASSETS for as much as they will realize.