What happens during the liquidation process?
In general, all activities that occur during the liquidation process lead to the dissolution of society. This may largely include the sale of the company's real estate, repayment of debts, and clarifying all legal problems if they exist. Companies follow the step by step procedure to be liquidated. Throughout the process, all business transactions should stop, except for those necessary to achieve liquidation.
disposal can generally be divided into two types. Voluntary liquidation occurs if there is a consensus between all partners or shareholders who would dissolve the company. On the other hand, compulsory liquidation is one that is required either by court or creditor. In both types, the liquidation means selling all assets of the company to receive sufficient finances to pay off debts. However, this does not mean that all liquidation of the company is caused by bankruptcy.
After determining the need to dissolve, the appointment of the official lifting is chidator. MONI liquidatorIt wears and examines the entire liquidation process, which may include the collection of the company's assets and the distribution of these assets to creditors. The task is also to inform the competent authorities about any misconduct revealed during the investigation. All the power and authority of the company executives will be removed and transferred to the liquidator after the appointment.
After repayment of loans, employees may be entitled to their wages. Sometimes another amount is distributed to compensate for any damage caused by the liquidation process. If there is an excess of funds after the company's asset, the liquidator can divide the amount between partners of the company.
The next step is to send messages to all parties, whether creditors or court. The report shall state the final financial status of the Company after the liquidation process is completed. After all notifications, the company can be officially dissolved. The liquidation process can insist indefinitely, dockD must be achieved. Of course, it is more practical to perform the process as soon as possible.
In general, the liquidation process signals the end of the company, but for some people only another commercial enterprise begins. After liquidation, the company can decide to collect the same partners and create a new company bearing another name, but still offers the same type of products and services. The company can also satisfy the same clientele and cooperate with the same manufacturers. The company that does this is called Phoenix because it seems to be "reborn" after dissolution.