A corporation goes through liquidation when its operations are terminated and its assets are liquidated to pay off debts. Liquidation is a legal process that can be started by the company's directors, shareholders, or creditors and is governed by the Corporations Act 2001. The liquidator plays a crucial role in the liquidation process, investigating the company's affairs and distributing the proceeds of the liquidation to creditors and shareholders. Liquidation has significant consequences for the company's directors, shareholders, and creditors, and should be carefully considered before it is initiated.