End up a Company – Liquidation

voluntary liquidation process

Liquidation is a process that is related to the economic level of the company and as well as the company’s poor performance.  It is a process that the company may end and its shares can be distributed through the shareholders or partners of the particular company. The voluntary liquidation process can also be done by a businessman who did not want to continue his/her business.  It usually occurs when the company is insolvent. The creditors have their own choice to accept the liquidation process if they did not need that they will hand over the process to another person who is willing to handle this. As per the company, many of the poor companies want their stocks to be sold out, so they planned that they are selling their goods at a very low price and they did not want the profit yet. Although many of the companies came forward while a company is doing a liquidation process, if they are interested they can make a move.  Once the liquidation process is done the persons who are in the company before having no value and they have no posting at all.

voluntary liquidation process

Assets distribution

If we want to run a company we have to put some effort and need some partners or shareholders to make it wealthier.  But if we are planned to liquidation we need to return all the money of our shareholders and the people who are involved as the shareholders.  It is not necessary that other persons only can buy the company or the goods, it is well and good that the people who are already shareholders or the partners can also buy companies liquidation and they have the power and potential to work for that company then it is possible.  If the shareholders want their cash back, for that the company must have some reputation, and as well as they have the potential to run or take over another company.  The main thing is that the liquidation company didn’t have any cases in their company. If all these exist the company did not receive any further amount or rewards for their liquidation.  There is also a security policy that the shareholders or the brokers may sell the company at a good cost or else sell the company’s goods at a good rate.  It is the process that the company needs to repay all the amount to the creditors as soon as the company closes.  In the process of liquidation, a company petition can be issued, this can be circulated to all the companies that are related to the company that is ready for sale.  If anyone of the company members wants to retain the business they can.  If the company runs peacefully the shares are also good and the shareholders are need not worry about anything.  But if a company is liquidating they are having the right to cancel the shares of their partners and they may suffer a lot by this.  For better choices, we could discuss it before we announce the liquidation process and we should clearly explain to them that if it becomes a gain or loss we have to accept and move on for the betterment of our life.  If it is good then we have our liabilities on cash.