Voluntary Liquidation
Content
Definition
Voluntary Liquidation is the process of dissolving a company with the agreement of its shareholders, distributing its assets to claimants.
Usage and Context
Voluntary liquidation is the process of closing a company with shareholder agreement, distributing assets to claimants.
Frequently asked questions
- What is the voluntary liquidation process? The voluntary liquidation process is when a company chooses to dissolve itself, selling off assets and distributing proceeds to creditors and shareholders.
- What is the difference between voluntary liquidation and dissolution? Voluntary liquidation involves selling off assets and closing a business by choice, while dissolution is the formal closure of a business, either voluntarily or through legal processes.
- Is liquidation voluntary or involuntary? Liquidation can be voluntary, started by the company, or involuntary, started by creditors or through court order.
Benefits
Voluntary liquidation dissolves a company with shareholder agreement, distributing assets accordingly.
Conclusion
Voluntary liquidation involves closing a company with shareholder agreement and distributing its assets.
