Who is called a liquidator?
A liquidator refers to an officer who is specially appointed to wind up the affairs of a company when the company is closing—typically when the company is going bankrupt. Assets of a company are sold by the liquidator and the resulting funds are used to pay off the company’s debts.
What is the main purpose of liquidation?
The main purpose of a liquidation where the company is insolvent is to collect its assets, determine the outstanding claims against the company, and satisfy those claims in the manner and order prescribed by law. The liquidator must determine the company’s title to property in its possession.
Why is it called liquidate?
Liquidate comes from the Latin liquidare, meaning “to melt,” or “to clarify.” A recipe might ask you to liquefy the butter, not liquidate it, because liquidate has to do with assets. To liquidate is to convert stocks or goods into cash by selling them, to finish business neatly, and to clear debts.
What happens when company liquidates?
It is an event that usually occurs when a company is insolvent, meaning it cannot pay its obligations when they are due. As company operations end, the remaining assets are used to pay creditors and shareholders, based on the priority of their claims. General partners are subject to liquidation.
What happens when a company is liquidated in South Africa?
If the firm has been liquidated by means of the court application, it is no longer a legal entity and thus does not exist. It is imperative to take responsible steps in saving a business entity as employees are involved and depend on the company for their income.
What is another name for liquidator?
What is another word for liquidator?
| overseer | sequestrator |
|---|---|
| receiver | administrative receiver |
| official receiver | administrator |
| insolvency practitioner | court administrator |
| trustee in bankruptcy | insolvency administrator |
How liquidator is appointed?
A liquidator is appointed in a MVL and CVL by the directors, which enables the directors to hold a degree of control over the process. An official receiver is appointed by the court as a liquidator when a winding-up order has been passed as a consequence of a creditor(s) forcing the company into compulsory liquidation.
Who will be paid first in liquidation?
This means the company is wound up, its assets sold, employees laid off. The process is managed by a licensed insolvency practitioner whose job it is to provide the best possibly return for corporate creditors, before paying them in order of priority.
What does liquidate mean in Crypto?
The term “liquidation” simply means converting assets to cash. Forced liquidation in crypto trading refers to an involuntary conversion of crypto assets into cash or cash equivalents (such as stablecoins). Forced liquidation occurs when a trader fails to meet the margin requirement set for a leveraged position.