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liquidation
(redirected from Insolvent liquidation)

   Also found in: Dictionary/thesaurus, Financial, Encyclopedia, Wikipedia 0.01 sec.

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

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



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Mentioned in?  References in periodicals archive?   Legal browser?   Full browser?
 
Directors can be held to account to a liquidator for depletion of the company's assets as a result of continued trading at a time when they knew, or ought to have known, there was no reasonable prospect of avoiding insolvent liquidation.
It should be stressed that liability for wrongful trading cannot arise until there is no reasonable prospect that the company can avoid going into insolvent liquidation.
Shareholders should be aware that if the placing and open offer are not approved at the egm, the directors will have to apply for administration or to commence an insolvent liquidation of the company".
 
 
 
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