Define liquidation

What does long liquidation mean? A bankrupt business is no longer in existence once the liquidation process is complete. Liquidation can also refer to the process of selling off inventory, usually at. Word Origin mid 16th century: from French, from liquider ‘liquidate’, based on Latin liquidus (see liquid).

Define liquidation.

English dictionary definition of liquidation. Put simply, liquidation is the process by which a company that has reached the end of its life is formally closed down and its assets realised (converted into cash ). Although the term is more commonly use in the context of insolvent companies, it may also be used in the context of solvent ones. See also: Panic selling.

Farlex Financial Dictionary. Compulsory liquidation of a company is when the company is ordered by a court to be wound up. Courts that can order a compulsory liquidation.

After three years of heavy losses the company went into liquidation with debts totaling $1million.

In other words, liquidation is the process of closing a business, paying off creditors, and giving the investors whatever is left over. Try it free for days. The store is having a. If a company is placed into liquidation, then its assets are sold or “liquidated” to turn those assets into cash, which are then paid to the creditors and shareholders of the Company.

In most cases, a liquidation sale is a precursor to a business closing. Once all the assets have been sol the business is shut down. In the accounting worl liquidation refers to the process of selling all of a company’s assets to generate cash to pay off creditors, or anyone the company owes money to. A compulsory liquidation is when the creditors of the company have lost all patience try to collect the debt. This often involves issuing a statutory demand first.

THE LIQUIDATION PROCESS Deciding to Liquidate. Good timing and sober judgment are important aspects of success in times of failure. Once a decision to liquidate has been reache the business needs to be close employees discharge and. People entering the.

Board meeting of Directors or Decision of Sole Director. Once the directors or a sole director have taken the advice of a licensed Insolvency Practitioner and have concluded to commence the liquidation process, they hold a meeting of the board or directors, or in the case of a sole director document a decision of a sole director, resolving to convene a general meeting of shareholders and a decision of creditors to place the company into liquidation (“Decision Date”). It will stop doing business and employing people.

In law, a liquidator is the officer appointed when a company goes into winding-up or liquidation who has responsibility for collecting in all of the assets under such circumstances of the company and settling all claims against the company before putting the company into dissolution.

One month after these events it went into liquidation owing creditors over £10000. More example sentences. It went into examinership in August after its British business went into liquidation and it was forced to close offices worldwide. If a company goes into liquidation then its assets, for instance, property and stock, are liquidated or turned into cash for the creditors of the company.

There are three types of liquidation. In law, liquidation is the process by which a company is brought to an en and the assets and property of the company redistributed. Property liquidation happens when real property is seized either through estate liquidation or bankruptcy proceedings. In most property liquidations, all assets in the home are cataloge priced.

Their duty is to ascertain and settle the liabilities of a company or a firm. Create New Flashcard. Most countries require a suitably qualified liquidator.