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Jun 30, 2024 · Liquidation: In finance and economics, liquidation is an event that usually occurs when a company is insolvent , meaning it cannot pay its obligations as and when they come due. The company’s ...
Creditors' voluntary liquidation is initiated by a company's directors when they realize that the company cannot meet its financial obligations or its liabilities exceed its assets value. The directors appoint a liquidator to handle the company's legal and financial matters, and they actively participate in the liquidation process to repay the company's debts.
Liquidation is a process in which the company is brought to an end. Also, the assets and property of the company are redistributed to the creditors and owners. Liquidation is also referred to as winding-up or dissolution, although dissolution technically refers to the last stage of liquidation. Liquidation may either be compulsory or voluntary.
Aug 21, 2023 · Voluntary Liquidation: A corporate liquidation that has been approved by the shareholders of the company. Voluntary liquidations stand in contrast to involuntary liquidations, which are a result ...
This clearly indicates that the company can be considered solvent and is in a position to make payments for the creditors. Creditors’ voluntary liquidation: This type of liquidation is processed when the directors/shareholders of the company realize that it is going to default on creditor payments, and no involvement court is there in this case.
This is the introductory video of Liquidation of Companies where I have explained1. Concept of Liquidation2. Modes of Liquidation3. Who can file petition for...
- 17 min
- 383K
- Saheb Academy
Aug 28, 2023 · Liquidation is the process of shutting down a business and distributing its assets to claimants. Its assets include any cash it still possesses and all of its physical property and equipment, or ...
