Which statement about liquidation is true?

Which statement about liquidation is true?

• A. The company can still exist as a legal entity after dissolution.
• B. Liquidation can be reversed at any time by the directors.
• C. The CH register remains updated with the company's status during liquidation.
• D. On completion, the company is dissolved and removed from the CH register, and the liquidator must be a licensed insolvency practitioner.

Answer: (D)

Liquidation ends the company’s life as a separate legal entity. When the process completes, the company is dissolved and struck off the Companies House register. The person conducting the liquidation must be a licensed insolvency practitioner to supervise the winding up, realise assets, and pay creditors in a regulated manner. This combination—dissolution on completion and removal from the register, with a licensed IP as liquidator—is what makes the statement true. The other options don’t fit: a dissolved company ceases to exist; liquidation can’t be reversed at directors’ whim; while the register is updated to reflect status changes, the decisive point is the dissolution and the licenced liquidator requirement.

Liquidation ends the company’s life as a separate legal entity. When the process completes, the company is dissolved and struck off the Companies House register. The person conducting the liquidation must be a licensed insolvency practitioner to supervise the winding up, realise assets, and pay creditors in a regulated manner. This combination—dissolution on completion and removal from the register, with a licensed IP as liquidator—is what makes the statement true. The other options don’t fit: a dissolved company ceases to exist; liquidation can’t be reversed at directors’ whim; while the register is updated to reflect status changes, the decisive point is the dissolution and the licenced liquidator requirement.