Liquidation 1100 Words You Need Week 15 Day 1

Liquidation 1100 Words You Need

Liquidation 1100 Words You Need

/ˌlɪk.wɪˈdeɪ.ʃən/ (noun)

1. the act of shutting down a business or company by selling all its property to pay its debts, insolvency, bankruptcy, closing, selling out
2. paying all debts, redemption

If a company enters into liquidation, it means that it will have to stop trading immediately and have a licensed insolvency practitioner (called a liquidator) appointed to sell the company’s assets in order to repay as much as possible to the creditors.

Source: https://www.thegazette.co.uk/

If the company cannot pay its debts, and you can’t either, a consequence could be that the company goes into liquidation and you may become bankrupt.

Source: https://www.afsa.gov.au/

There could be countless reasons why a company is facing insolvency and looking at a company liquidation, and in many cases directors will not be at fault for the predicament the company as a whole finds itself in. A limited liability framework protects those directors who have not failed in their obligations and duties, such as where the company has struggled due to unforeseen circumstances and external factors that the directors had no control over.

Source: https://www.theinsolvencyexperts.co.uk/

Noun: liquidator

Verb: liquidate

Farsi: انحلال

French: liquidation

Urdu: پرسماپن