The short answer is yes, that really is what liquidation was designed for. Of course, there are always a number of regulations governing the way in which the process must be handled, however in most cases the process is relatively straight-forward.
What’s Involved In The Process?
Liquidation is a process of appointing a liquidator (they have to be a Licensed Insolvency Practitioner) to close down the company. It means the company stops trading and effectively all the obligations on the directors end (although they have duties to cooperate with the liquidator).
The liabilities of the company only normally get paid from the assets left in the company. There is no obligation for the shareholders or directors to pay off the debts unless they have signed personal guarantees.