Liquidatie
Liquidation
Liquidation is the process of dissolution and winding-up of a legal entity, whereby assets are sold, debts are paid and the remainder distributed.
Liquidation is the legal process by which a company or other legal entity is wound up. This is effected by realising the assets, discharging the creditors and distributing any surplus among the shareholders or members.
The procedure is relevant in that it provides a formal mechanism for terminating a business without recourse to bankruptcy. Liquidation is frequently chosen where an enterprise ceases to be viable or the owners resolve to discontinue operations.
In practice, liquidation is commonly supervised by a civil-law notary or attorney to ensure that all statutory requirements are observed and that creditors are dealt with appropriately.
“The shareholders resolved to liquidate the BV after years of loss-making activities.”
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