liquidation

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Related to Compulsory liquidation: Winding Up Order

Liquidation

The collection of assets belonging to a debtor to be applied to the discharge of his or her outstanding debts.

A type of proceeding pursuant to federal Bankruptcy law by which certain property of a debtor is taken into custody by a trustee to be sold, the proceeds to be distributed to the debtor's creditors in satisfaction of their claims.

The settlement of the financial affairs of a business or individual through the sale of all assets and the distribution of the proceeds to creditors, heirs, or other parties with a legal claim.

The liquidation of a corporation is not the same as its dissolution (the termination of its existence as a legal entity). Depending upon statute, liquidation can precede or follow dissolution.

When a corporation undergoes liquidation, the money received by stockholders in lieu of their stock is usually treated as a sale or exchange of the stock resulting in its treatment as a capital gain or loss for Income Tax purposes.

See: aberemurder, assassination, cancellation, composition, discharge, dispatch, dissolution, homicide, killing, murder, payment, termination

liquidation

the procedure under which a company is dissolved (or wound up). Liquidation maybe voluntary (where the company is solvent but where the purposes for which it was set up have been achieved or no longer exist) or compulsory (usually where the company is insolvent). The function of a liquidator is to convert the assets of the company into cash, which is then distributed among the creditors to pay off (so far as possible) the debts of the company. Any surplus is then distributed among the members.

LIQUIDATION. A fixed and determinate valuation of things which before were uncertain.

References in periodicals archive ?
He was a second director of World Future, as well as a company called Capital Wealth Limited, which has also been put into compulsory liquidation.
months preceding any compulsory liquidation, administration or
Sandy Mewies AM hopes the Clocktower can be returned to public use despite the winding up of the Broli Cymraeg Trust The Broli Cymraeg Trust, based at The Clocktower, Mostyn, has gone into compulsory liquidation and been wound up
The firm was placed into compulsory liquidation because it was insolvent and unable to pay its debts.
9 per cent over the same period, administration orders by 55 per cent, compulsory liquidations by 26.
However, the airline went into compulsory liquidation last month.
Camelot Pine Limited was placed into compulsory liquidation by the Order of the Newcastle District Registry in July 2001.
Fenline Limited was placed in compulsory liquidation by the High Court in January 2002 on petition of the Inland Revenue for pounds 8,681,078 unpaid VAT.
Best was a director of Bestex Coatings Limited, which went into compulsory liquidation in 1997 after a flood of complaints.
Whilst it has not been possible to examine all transactions and obligations of CCC in the brief period since the order for compulsory liquidation on the 17th March 2008, the preliminary assessment of the current CCC financial position is as follows:-
No fewer than 20 companies in this snake pit are due to be put into compulsory liquidation in the public interest early next year.
Communications Int Holdings) Limited went into Compulsory Liquidation on

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