What happens to company assets in liquidation?

In liquidation, the appointed liquidator is responsible for identifying, valuing, and selling the company’s assets. These can include property, vehicles, machinery, stock, intellectual property, and outstanding debts owed to the company. Assets are typically sold at auction, through agents, or in negotiated sales to maximise value. The funds raised are then distributed to creditors in accordance with the statutory order of priority. In some cases, directors or connected parties may purchase assets, but such sales must be transparent and achieve fair market value. Liquidators also investigate whether any assets were transferred at undervalue before liquidation and can reverse such transactions to benefit creditors. For directors, it is important to note that once liquidation begins, they no longer control company property, and attempts to dispose of assets can be treated as misconduct. The liquidation of assets is central to ensuring creditors receive as much repayment as possible.