In addition, the term "liquidation" is sometimes used when a company wants to divest itself of some of its assets.This is used, for instance, when a retail establishment wants to close stores.Property which is held by the company on trust for third parties will not form part of the company's assets available to pay creditors.
For example, a party who had a valid contract for the purchase of land against the company may be able to obtain an order for specific performance, and compel the liquidator to transfer title to the land to them, upon tender of the purchase price.
After the removal of all assets which are subject to retention of title arrangements, fixed security, or are otherwise subject to proprietary claims of others, the liquidator will pay the claims against the company's assets.
The liquidator must determine the company's title to property in its possession.
Property which is in the possession of the company, but which was supplied under a valid retention of title clause will generally have to be returned to the supplier.
The court may appoint an official receiver, and one or more liquidators, and has general powers to enable rights and liabilities of claimants and contributories to be settled.