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 ?
David Baines, director of the association, said: "The decision has been taken to go into creditors' voluntary liquidation.
PwC's corporate insolvency figures, which are based on administration, administrative receivership, company voluntary arrangements and creditors' voluntary liquidation appointments, come hot on the heels of another bleak survey.
Knowsley Transport & Forwarding Limited traded as road freight hauliers between 1990 and approximately July 1999 from Charleywood Road on the Knowsley Industrial Estate North before being placed into creditors' voluntary liquidation on 21 February 2000 with a deficiency to creditors estimated at around pounds 135,000.
In May 2001 four of Corum's subsidiaries, Mortgage Direct, Mortgages 'R Us, Mortgage Direct West and Telemark were placed into creditors' voluntary liquidation and share dealing was suspended.
Mr Kings said: "I can confirm that Energy Efficient Windows Ltd has gone into creditors' voluntary liquidation.
Ouseburn Watersports Association in Byker, Newcastle, has gone into creditors' voluntary liquidation with debts of almost pounds 100,000.
There is no equivalent to a creditors' voluntary liquidation for a traditional partnership, although this is available to an LLP.
The creditors' voluntary liquidation is the final part of the administration process and is a technicality to allow a dividend to be paid to unsecured creditors.
The Insolvency Service reported last month that there were 4,080 compulsory liquidations and creditors' voluntary liquidations in England and Wales in the second quarter of 2010, which was an increase of 0.
He has experience of a range of cases including pre-pack, trading and non-trading administrations, creditors' voluntary liquidations, members voluntary liquidations and administrative receiverships.