1. Company liquidation 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 reasons for dissolution stipulated in the articles of association. According to the provisions of the Company Law, when the company is dissolved due to the resolution of the shareholders' meeting, the expiration of the business term stipulated in the articles of association, the deadlock of the company or the forced dissolution due to illegal activities, the company shall set up a liquidation group within 15 days. The liquidation group of the company refers to an organization established according to law to handle the company's creditor's rights and debts after the liquidation of the company, and represents the liquidation group of the company during the liquidation period.
2. According to the relevant provisions of Chapter 10 of the Company Law of People's Republic of China (PRC), it refers to the legal act of clearing, disposing and distributing the company's property and creditor's rights and debts in accordance with legal procedures to end its creditor's rights and debts when the company is dissolved, thus depriving the company of its legal person status. Except for dissolution due to merger or division, liquidation procedures must be handled for dissolution due to other reasons.