Liquidating assets company

Posted by / 28-Mar-2020 04:36

Liquidating assets company

The court may dismiss the application if the petitioner unreasonably refrains from an alternative course of action.

In some legal systems, in appropriate cases, the liquidator may be able to bring an action against errant directors or shadow directors for either wrongful trading or fraudulent trading.Liquidation may either be compulsory (sometimes referred to as a creditors' liquidation following bankruptcy, which may result in the court creating a "liquidation trust") or voluntary (sometimes referred to as a shareholders' liquidation, although some voluntary liquidations are controlled by the creditors).The term "liquidation" is also sometimes used informally to describe a company seeking to divest of some of its assets.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.

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For instance, a retail chain may wish to close some of its stores.