liquidation

(redirected from Creditors voluntary liquidation)
Also found in: Dictionary, Thesaurus, Financial, Acronyms, Encyclopedia.
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 ?
The court heard that Lee Smith was a director of Smith Waste and Recycling (SWR), based in Warrington, before the company entered into a Creditors Voluntary Liquidation in November 2014.
The number of businesses entering creditors voluntary liquidation (CVL) - the standard form of liquidation - was also up by 11% to 191 in the same period.
He fraudulently transferred 59,000 to an associate from a company that he shouldnt have been running shortly before it entered into Creditors Voluntary Liquidation and also failed to deliver to the liquidator all the files that were needed to help formally shut down the company.
SMS was incorporated on 12 March 2015 and traded from Chatsworth Farm, Kirby Cross, Frinton-on-Sea, Essex before the company went into Creditors Voluntary Liquidation in May 2017, owing 413,156.56 to creditors.
'Having consulted corporate recovery specialists at Grant Thornton, the directors were advised that CM&ES should be placed into creditors voluntary liquidation in order to achieve an orderly realisation of the company's assets.
However, the company went into Creditors Voluntary Liquidation in January 2015 with an estimated deficiency of more than 2.8 million.