Liquidating definition - list of 100 dating sites in australia
A common reason for liquidation is for the directors/shareholders to close a company which has accumulated large reserves and to realise the value in a tax efficient way.Members Voluntary Liquidation – where directors/shareholders close a company with large accumulated reserves.
In this case additional funds may not be possible to source and therefore the members will be required to “liquidate” their assets to meet their debts – i.e.Liquidation is the process whereby the assets of a company are realised to cover the debts of the company.Company Liquidation may be by means of: Members Voluntary Liquidation – where assets exceed liabilities Creditors Voluntary Liquidation – where there are insufficient assets to cover the liabilities.The estimated amount of money that an asset or company could quickly be sold for, such as if it were to go out of business.If the liquidation value per share for a company is greater than the current share price, then it usually means that the company should go out of business (or that the market is misvaluing the stock), although this is uncommon.Collins English Dictionary - Complete & Unabridged 2012 Digital Edition © William Collins Sons & Co.
Liquidation in finance and economics, is the process of bringing a business to an end and distributing its assets to claimants. Solvent companies may also file for Chapter 7, but this is uncommon.In a Members Voluntary Liquidation the company is solvent, creditors are paid in full and the remaining funds transferred to the directors/shareholders.For a more detailed explanation of a Members Voluntary Liquidation click here Creditors Voluntary Liquidation – where a company can no longer meet it’s debts as they fall due i.e. For a more detailed explanation of a Creditors Voluntary Liquidation click here Court Liquidation – where a company, through either it’s directors or creditors, makes an application through the courts to have a Liquidator appointed specialise in providing experienced Liquidators for Members Voluntary Liquidations and Creditors Voluntary Liquidations.Liquidation is not always the result of insolvency.In fact many solvent companies are liquidated through a members voluntary liquidation process when they wish to realise the value of large accumulated reserves in a tax efficient way.Assets are distributed based on the priority of various parties’ claims, with a trustee appointed by the Department of Justice overseeing the process.