What is meant by Liquidations?

Liquidation is the procedure of paying off or settling a debt, claim or obligation. It is broadly defined as the process by which the affairs of a business or company are settled by determining the liabilities and disposing off its assets to discharge the same. Liquidation in most cases, is carried out by converting a company’s assets into cash. The leftover assets after liquidation are disposed off as per terms and conditions mentioned in a company contract.

In some cases, the top management of a company or some misguided individuals might be responsible for embezzling funds or siphoning off assets of the company for their private interests. In such cases, the organization can be dissolved on the wishes of its investors and the entire assets of the company may be subject to liquidation.

If you have any clarifications with respect to liquidation, it’s better to touch base with our established team of Online Business Lawyers in Perth for any details related to the same.

When an organization decides to wind up for reasons unknown or a company has gone bankrupt and cannot continue operations anymore, the director board and all other stakeholders might come to the unfortunate decision of liquidating the entire assets of the company.

A court monitored liquidation can be initiated with a simple application to the court by a litigant in the organization. The court will ensure that liquidation can be processed as quickly as possible if it finds the organization guilty of defaulting on payments or when the stakeholders of an organization are no longer able to execute the duties expected of them.

For any information regarding liquidations, please feel free to get in touch with our efficient team of small business lawyers in Perth. We will be glad to be of assistance and even represent you in court, if needed.

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