What does liquidating mean

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In this case, the company directors meet with both the shareholders and the creditors.By the time they meet with the creditors, however, they will have appointed a liquidator, which the creditors can decide to accept or reject.A company can enter examinership when it’s in financial trouble but still has the potential to return to profitability.In this case, an examiner is appointed by the courts, whose job it is to come up with a strategy to save the company, having first determined that it is possible.

Voluntary liquidation When a solvent company decides to go into liquidation, it enters what is called a members’ voluntary liquidation, where the majority of the directors declare that the company is, indeed, solvent.However, since the alternative is "he becomes a business man", which implies an active choice, this seems unlikely - and a bit overly aggressive.Although this the interpretation of choice when we look at the French Revolution.So if the feudal lord does not convert his assets into whatever can make him thrive in the industrialized world (so, he becomes a business man), his only other options is to sell his properties, that is, to liquidate.With the proceeds of those sales, he can then live as a financially independent person outside the industrial economy.

Once this is agreed upon, the primary role of the liquidator is to recoup the maximum amount possible for the company’s shareholders (paying creditors should be a non-issue because of its solvency).

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