The Covid-19 virus is seriously affecting business on a scale that is unprecedented in recent decades. The current situation has given rise to a large number of challenges for businesses because suppliers are unable to meet commitments or employees cannot go to work. Your friend, Peter, has been operating a cha chaan teng (tea dining room) for some years. He knows that you have just completed the Business Law course and seeks your legal advice.

Due to a big drop in business revenue, Peter is facing great financial difficulties. He is planning to close down his business but does not know how to do it. He has heard of personal bankruptcies and company winding up but does not understand the differences between the two. Compare the nature and effects of the two legal proceedings