Liquidation Process
What is company liquidation?
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The company liquidation is the way toward closing an LLC company, canceling the trade license and distributing the organization assets and properties. In other words, after liquidation, the organization will no longer exist. Company Liquidation process may differ based on the legal types of the UAE company in terms of the documentation and procedures. According to UAE laws, rules and regulation there are 2 kinds of Company Liquidation.
Voluntary Liquidation
The first category we can describe like, all shareholders agree and decide to organization voluntary liquidator. the main purpose of wind up the organization is no money has to pay for creditors because of the loss of Business, no profit.
Compulsory Liquidation
Compulsory liquidation implies wind up the company on court order and Distribute company assets to the creditors and pay Debt, or Pay contributor dependent on the priority of claims.
What Happens to a Company When it Goes into Liquidation?
What Happens to a Company When it Goes into Liquidation? The process is as follows. Having perceived either the possibility or the fact of insolvency, you should make contact with an insolvency practitioner. Once officially delegated the insolvency practitioners will advertise the liquidation in the Gazette and alert creditors as to the situation. Formal meetings take place where the IP can communicate with the creditors and answer any relevant inquiries. Directors powers cease, all employees become redundant, and the IP proceeds with evaluating what cash exists to pay back creditors. Once everybody has been paid, the organization is struck off the register at Companies House and formally ceases to exist.