What is liquidating assets mean
If the majority of shareholders (75% or more) vote to liquidate, then the process can start.
Compulsory liquidation In this situation, the company is completely unable to make payments to its debts and the director applies direct to the court to request that the liquidation process is implemented.
To liquidate is to convert stocks or goods into cash by selling them, to finish business neatly, and to clear debts.
If you liquidate your old baseball card collection, you will have money to put in your college fund.
The liquidator is brought in to manage the liquidation process.
You'll have to determine a minimum bid price for each, write a description, take photos and hire an auction house. You receive a check from the auction house within a week or so, after the items are delivered.Turning assets into cash is typically done in order to pay off a variety of debts, depending on investments made into the business by creditors, or loans taken out in growing the business, for example.Liquidating leads to dissolving the company, and bringing all activity to a close.An intrinsic part of the liquidator’s role would be to investigate all company affairs should they need to recover any of the company’s assets that have been misplaced or sold at less than market value from the company as the liquidator is at liberty to reverse these transactions.
Collins English Dictionary - Complete & Unabridged 2012 Digital Edition © William Collins Sons & Co.
Insolvency You may be forced to consider liquidation because your company is no longer solvent.