The Financial Economics search for the liquidation of firms

 Definition of corporate liquidation

The liquidation of the company can be defined as the set of operations that aim to terminate the company's business, distribute all its assets to the claimants, and distribute the remaining assets, if any, to the partners and creditors, each according to the priorities of their claims, [1] and it can also be defined as the termination of all The company's commercial operations by selling assets, or transferring all of the company's shares, and there are several reasons that require choosing to liquidate the company, such as: the desire to close the company, sell it, or change its business structure. [2]

It should be noted that a liquidator must be appointed to handle the company’s obligations and management duties related to the company. When the liquidation process ends, the company is dissolved, its registration at the companies ’headquarters is canceled, and its existence ends. [3]

Filter types

There are many types of company liquidation, and they are as follows: [4]

Compulsory liquidation: Creditors in this case ask the court to implement the liquidation of the company, because it is insolvent and unable to pay its debts, as one of the largest creditors petitioned the court.

Voluntary liquidation of members: In this type of liquidation, the company is able to pay its owed debts, and voluntary liquidation procedures for members can be started without any interference from the court.

Voluntary liquidation of creditors: This liquidation is initiated by the members of the Board of Directors, and there is no interference from the court in it, and the company is insolvent and unable to pay its debts.

Managing the liquidation process

The filter manages the filtering process, which includes the following: [5]

Providing advice to various governmental organizations, such as: the tax office.

Asking managers to complete questionnaires, and hand over the books and company records to the liquidator.

Collecting and selling the company's assets, preparing the creditors' report and holding a meeting for them.

Distribute cash to creditors if funds are available.

Recover hidden assets, or assets that must be recovered.

Investigating the company’s affairs, such as: Board members ’violations, if any, or if they are

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