Who can initiate a Liquidation process?

Initiating a liquidation process is a critical event in a company's lifecycle, often taking place when a company can no longer meet its financial obligations or desires to wind up its affairs. Both creditors and shareholders have the authority to initiate this process, reflecting their vested interests in the company's assets and overall financial situation.

Creditors can initiate liquidation proceedings primarily to safeguard their interests and recover debts owed to them. When a company is defaulting on its obligations, creditors may seek to liquidate the company's assets to satisfy outstanding debts. This ability grants them a significant role in the liquidation process as they may perceive it as a necessary measure to mitigate their losses.

On the other hand, shareholders may also initiate liquidation, especially when they believe that the company's operations are not sustainable or when they wish to realize the value of their investments. In situations where shareholders feel the management is mismanaging the company or when the business prospects seem bleak, they can push for liquidation to recover whatever value is left.

Thus, the correct choice captures the dual authority of both creditors and shareholders to instigate the liquidation process, indicating their respective rights and motivations in the event of winding up a company.