Liquidating a cc
The decision to liquidate is made by a board resolution, but instigated by the director(s).75 percent of the company's shareholders must agree to liquidate for liquidation proceedings to advance.For instance, a retail chain may wish to close some of its stores.For efficiency's sake, it will often sell these at a discount to a company specializing in real estate liquidation instead of becoming involved in an area it may lack sufficient expertise in to operate with maximum profitability.In most legal systems, only fixed security takes precedence over all claims; security by way of floating charge may be postponed to the preferential creditors.Claimants with non-monetary claims against the company may be able to enforce their rights against the company.
If it is a court-ordered liquidation, the court has the choice to stay or restrain any proceedings against the company when required.
Separate meetings of creditors and contributories may decide to nominate a person for the appointment of a liquidator and possibly of a supervisory liquidation committee.
Voluntary liquidation occurs when the members of a company resolve to voluntarily wind up its affairs and dissolve.
Liquidation is the process in accounting by which a company is brought to an end in the United Kingdom, Australia, Republic of Ireland, Cyprus and United States.
The assets and property of the company are redistributed.
When liquidation occurs the company does not have the power to dispose of its property.