It is the saddest part for any company to wind up or terminates its firm due to the financial trouble of the company. It is quite often seen that the company is facing a financial trouble these days. These happen due to lack of productivity or we can say that the company is unable to sell his goods in the market. Sometime the company is investing lots of money and produces goods for the consumer, but unfortunately those products doesn’t seek the attention of the buyer, these will lead to the abundant storage of goods which becomes unwanted after a few days. And the company is unable to make the money from the produced goods, so these factors will leads the companies in financial trouble. If certain solutions and suggestions from others won’t help the company to ascend from this trouble then there will be only one thing left to do in this is just to liquidate the company.
Liquidating a company is actually referred to as a legal closure of a company. Through liquidating a company the company owner will be able to pay the amount which they owe from the creditors and shareholders.
ROLE OF THE LIQUIDATOR’S IN LIQUIDATING A COMPANY …..
Once a company is in liquidating stage the liquidator’s will take the charge of the company. The role of liquidator’s is to collect, protect and realise the company’s assets. Liquidator’s will investigate about the failure of the company and will report about it. After the completion of the Liquidation process the liquidator’s will distribute the amount to the creditors. Firstly the amount is distributed to the priority creditors, employees, and then to the unsecured creditors.
Liquidating a company is actually referred to as a legal closure of a company. Through liquidating a company the company owner will be able to pay the amount which they owe from the creditors and shareholders.
ROLE OF THE LIQUIDATOR’S IN LIQUIDATING A COMPANY …..
Once a company is in liquidating stage the liquidator’s will take the charge of the company. The role of liquidator’s is to collect, protect and realise the company’s assets. Liquidator’s will investigate about the failure of the company and will report about it. After the completion of the Liquidation process the liquidator’s will distribute the amount to the creditors. Firstly the amount is distributed to the priority creditors, employees, and then to the unsecured creditors.
Once the projected amount is paid to its creditor’s and employee, then in the next step the liquidator’s will apply for the deregistration of the company after the completion of the Liquidation process.
And if there are not enough assets to pay the costs, then a liquidator’s is not required to do any work. Suppose if the company is without sufficient assets, and one or more creditors may agree to compensate a liquidator’s costs & expenses for taking action to recover a further assets from the company for the benefit of creditors, so in this case if any further assets are recovered, then the liquidator or certain creditor can appeal to the court for the creditor to be compensated for the risk involved in funding the liquidator’s recovery action.
So the liquidator’s play such dynamic role in liquidating a company. Without liquidator’s it is quite impossible to clear up the things. Taking charge from the beginning to the end till the de-registration of the company. Without liquidating the assets it is not possible to exit or we can say that termination of business is not possible. So one has to liquidate their assets before the termination of the business in-order to pay their creditors and shareholders. Liquidation is the best way to terminate their current business and de-registered their company from the list and can start a new business. A fresh start can bring new dignity to the individuals.
Click Site!!
And if there are not enough assets to pay the costs, then a liquidator’s is not required to do any work. Suppose if the company is without sufficient assets, and one or more creditors may agree to compensate a liquidator’s costs & expenses for taking action to recover a further assets from the company for the benefit of creditors, so in this case if any further assets are recovered, then the liquidator or certain creditor can appeal to the court for the creditor to be compensated for the risk involved in funding the liquidator’s recovery action.
So the liquidator’s play such dynamic role in liquidating a company. Without liquidator’s it is quite impossible to clear up the things. Taking charge from the beginning to the end till the de-registration of the company. Without liquidating the assets it is not possible to exit or we can say that termination of business is not possible. So one has to liquidate their assets before the termination of the business in-order to pay their creditors and shareholders. Liquidation is the best way to terminate their current business and de-registered their company from the list and can start a new business. A fresh start can bring new dignity to the individuals.
Click Site!!