To get rid from this problem, maximum number of individuals or entrepreneurs desires to liquidate the organization for a specific period of time. It is mainly applicable, when an organization had to distribute huge amount of debts to large number of creditors in the market. Along with this, numerous entrepreneurs also attempt to hire specialized individuals, in order to attain advices to cope up with this situation. It is extremely essential for the business concerns operating in this era, to sustain for long run.

Apart from this, it also helps an organization to regain its previous image and reputation in the market among other players. Due to which, the loyal customers of the organization again attempt to become a client of their preferable concern, inspire of the new. It would also facilitate the organization to enhance the profitability and ROI in the upcoming days in this aggressive market place.

Company liquidation is described as a procedure, with the help of which, an organization can be winded up or entirely closed. When this decision commences, all the assets and properties of the organization are distributed with the creditors to pay off the debts.

During this time frame, all the duties of the directors are distributed among the externally hired individuals, so as to offer relief from the troubles. Another striking feature of a liquidate company is that, at this time, no creditor can take any sort of legal action against the organizational management. Any sort of unsecured debts also gets written off, along with numerous tax liabilities, in this situation.

It includes two types of liquidation processes such as voluntary and involuntary liquidation. In which, the prior is applicable within the organization, when the hierarchy requires huge amount of revenues. Other the other hand, the former type gets applicable, when forced by law of the country in order to get freedom from bankruptcy.

Therefore, it plays a vital role, in minimising the heavy debt of the entrepreneurs, and acts as a lifeline to survive in this era. Along with this, varied types of specialised programmes are advised, which might reduce the impacts of destitution. Due to these above mentioned causes, the prospect of these programmes are enhancing at a rapid scale all-round the universe. By doing so, it offers a new approach to the enterprise, facilitating to start in a new manner, among other market players.

Thus, it can be stated that these rules and laws are extremely essential for any organization suffering from this problem of impoverishment.