Asset Liquidation Companies

Liquidation is simply the process by which a company's assets are realised and distributed to those parties legally entitled to them, so that it can be dissolved. A Voluntary Liquidation is one which has been instigated by the passing of a resolution by the shareholders, as opposed to a winding up order made by the court, generally at the behest of an unpaid creditor. Liquidation is a very scary word for most of us. But the reason we get nervous is just because we really don't understand what liquidation is. Liquidation is short, but it contains so much: lucid and illuminating reflections on life under communism, divorce, the agonising futility of a life spent in literature ("a person becomes a literary editor . It seems astonishing that a 130-page novella can have such scope and depth.

Liquidation is a process whereby a company has its assets realised and distributed to satisfy, insofar as it is able, its liabilities and to repay its shareholders. The term winding-up is also used. Liquidation is about the endeavor to do so in spite of it. We are given storyless survivors, and B.'s shifting writing is his attempt to give narrative shape to lives that have been robbed of it.

Companies

Companies are very much like people. They can be healthy or very ill; they can behave like angels, or be a little naughty. Companies can be closed through an informal procedure under extra statutory concession C16 or through a formal liquidation by an insolvency practitioner. The informal route involves a written application to HM Revenue & Customs, requesting that the final distribution of retained profit be treated as if it were a capital distribution. Companies involved in this liquidation procedure are in fact able to pay all their creditors but can still be wound up simply because they are no longer useful. However, if a company goes through an insolvent liquidation, this form of company liquidation is always terminal. Companies that have been household names have collapsed and in some cases, hundreds of people have lost their jobs.

Dissolution

Dissolution is a formal process (see Insolvency Act 1986 ss 201-205 & Companies Act 1985 s 652.) which extinguishes the legal entity which first arose on the similarly formal registrati on of the company (Companies Act 1986 Pt I). It is well known that liquidation is not necessarily a formal procedure - notwithstanding the menu of formal procedures (compulsory liquidation, members' or creditors' voluntary liquidation) embodied in the In solvency Act 1986 Part IV. Dissolution of an organisation is the act of ending its "life" as a legal entity. It could be that the purpose for which the organisation was set up has been achieved — in which case it's part of the natural life cycle of the organisation.