What does liquidating mean dating he in interested sign
Liquidation, also referred to as "winding up", is the process by which a company's assets are liquidated and the company closed, or deregistered.
There is one term that is crucial to understanding liquidation:"insolvent".
Liquidations are far more common in bankruptcies and situations where the business is closing because it cant support itself with revenues than any other instance.
In a bankruptcy, the court generally takes control of the assets in order to sell them at auction to pay off the outstanding liabilities.
Liquidation means turning fixed assets into liquid assets, namely into cash.
Thus an owner selling his or her business for cash as a going concern is technically liquidating it—but in usual parlance the term is applied only to a situation where a business is closed and all of its assets are sold.
When the liquidation is complete, the company is removed from the Companies Office Register.
Directors are also required to help the liquidator locate the business records and assets, and to answer any questions about the company and its business.
By contrast, an insolvent company can be wound up by the court or by a creditors' voluntary winding up.In a members' voluntary winding up, the company's debts will all be paid.A liquidator is appointed when a company is placed into liquidation.A company is solvent if it can pay its debts when they fall due and insolvent if it can't.The financial state of the company is important because it determines what kind of liquidation the company will enter, as well as the types of investigations that a liquidator will undertake.