Liquidation and Restructure
A company is considered to have a separate legal entity distinct from those of its directors and shareholders. A company must pass through the legislative and regulatory process before it can be considered incorporated and existing, capable of entering into binding reciprocal promises, recognized under the law. It is in the same vein that a company must pass through a process before it can be considered dissolved.
The dissolution of the company will be allowed if it is first liquidated in the various ways provided for by law. The court can liquidate the company, or the liquidation can be voluntary by the company itself or its creditors or it may be subject to the supervision of the court.
Alternatively, the company can be put under examinership whereby it comes under court protection against creditor action in order to provide the necessary period for the restructure of the company. An examiner will be appointed upon court motion who will be responsible to submit proposals for a compromise and/or scheme(s) of arrangement with shareholders and/or creditors.