What does it mean for the company to be liquidated?

Legal analysis: refers to the dissolution and liquidation of the company. It refers to the act of clearing up the company's creditor's rights and debts according to law after the company has legal reasons for dissolution or the reasons for dissolution stipulated in the articles of association.

Legal basis: People's Republic of China (PRC) Company Law.

Article 180 The company is dissolved for the following reasons:

(1) The business term stipulated in the articles of association expires or other reasons for dissolution stipulated in the articles of association occur;

(2) The shareholders' meeting or shareholders' meeting decides to dissolve;

(3) The company needs to be dissolved due to merger or division;

(4) The business license is revoked, ordered to close or revoked according to law;

(5) The people's court shall be dissolved in accordance with the provisions of Article 182 of this Law.

Article 183 Where a company is dissolved due to the provisions of Item (1), Item (2), Item (4) and Item (5) of Article 180 of this Law, a liquidation group shall be established within 15 days from the date when the reasons for dissolution appear to start liquidation. The liquidation group of a limited liability company is composed of shareholders, and the liquidation group of a joint stock limited company is composed of directors or personnel determined by the shareholders' meeting. If a liquidation group is not established for liquidation within the time limit, the creditor may apply to the people's court to appoint relevant personnel to form a liquidation group for liquidation. The people's court shall accept the application and promptly organize a liquidation group to carry out liquidation.