Analysis of the Company Liquidation Process and its Impact on Stakeholders

Abstract

This study aims to analyze the company liquidation process and its impact on stakeholders. Liquidation is the final stage in a company's life cycle, occurring when the company is no longer able or viable to continue its operations, either due to internal decisions or court rulings. This study uses a qualitative descriptive approach with a literature review method based on laws and regulations, accounting literature, and relevant previous research. The results indicate that the company liquidation process involves several important stages: company dissolution, inventory of assets and liabilities, sale of assets, repayment of obligations to creditors, and distribution of remaining assets to shareholders. The liquidation process has economic, legal, and social impacts on stakeholders, particularly creditors, employees, shareholders, and the government. Liquidation that is carried out transparently, accountably, and in accordance with legal provisions can minimize conflict and provide certainty and fairness for the parties involved. Conversely, poorly managed liquidation has the potential to cause economic losses and legal uncertainty. This research is expected to serve as a reference for academics, practitioners, and regulators in managing company liquidations more effectively and equitably.