Liquidation can have two meanings on the markets. The first is the process of distributing a company's assets as it ceases to operate. The second is when you exit a position on a market, usually by selling an asset for cash.
If a company goes into liquidation, then its available assets are used to pay the outstanding obligations it has to creditors – and sometimes to investors. In most countries, shareholders will only receive assets once all creditors have been paid.
What happens to the director of a company in liquidation?
The director of a company in liquidation will typically lose control of the business. An appointed liquidator will then make decisions on how the company should be wound down.
Directors may stay on to help with this process. They won't receive any proceeds from the liquidation of the business unless they are a creditor.