liquidation

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Related to Creditors voluntary liquidation: Members voluntary liquidation

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 ?
Jyra Research Ltd has been placed into Creditors Voluntary Liquidation.
ASSOCIATES LIMITED (In Voluntary Liquidation) AND IN THE MATTER OF THE COMPANIES ACTS 1963 TO 2009 NOTICE is hereby given that an Ordinary Resolution for the winding up of the above named company by means of a Creditors Voluntary Liquidation was passed on 22nd March 2010 and that Mr Tony McBride of Frank Lynch & Co was appointed liquidator for the purposes of such winding up.
The Northern 4x4 Centre, which had garages at Thropton near Rothbury and at the Vroom Car Retail Park in North Tyneside, has started proceedings for a Creditors Voluntary Liquidation, also known as an insolvent liquidation.