It can take account of personal relationships of mutual trust and confidence in small parties, particularly, for example, where there is a breach of an understanding that all of the members may participate in the business, Upon hearing the application, the court may either dismiss the petition, or make the order for winding-up.The court may dismiss the application if the petitioner unreasonably refrains from an alternative course of action.The liquidator must determine the company's title to property in its possession.Property which is in the possession of the company, but which was supplied under a valid retention of title clause will generally have to be returned to the supplier.If you are having creditor issues, you must get permission before selling items off. Take photos of each item and record its serial number and a brief description.Your accountant and lawyer can help you contact and negotiate with creditors. This record will help you file your taxes and explain your business liquidation to the Internal Revenue Service. Evaluate and identify which items you can liquidate. Each piece of furniture and equipment has value; find out what it is by researching what it sells for both new and used at auction websites and in classified ads. Many suppliers will take back their inventory and give you a refund.The process of liquidation also arises when customs, an authority or agency in a country responsible for collecting and safeguarding customs duties, determines the final computation or ascertainment of the duties or drawback accruing on an entry.Liquidation may either be compulsory (sometimes referred to as a creditors' liquidation) or voluntary (sometimes referred to as a shareholders' liquidation, although some voluntary liquidations are controlled by the creditors, see below).
The parties who are entitled by law to petition for the compulsory liquidation of a company vary from jurisdiction to jurisdiction, but generally, a petition may be lodged with the court for the compulsory liquidation of a company by: The grounds upon which one can apply for a compulsory liquidation also vary between jurisdictions, but the normal grounds to enable an application to the court for an order to compulsorily wind-up the company are: A "just and equitable" winding-up enables the grounds to subject the strict legal rights of the shareholders to equitable considerations.Whether you are simply retiring or you have to close down your business for less than pleasant reasons, liquidating your business and equipment can be a large job.Once you've decided to go out of business and liquidate, it's important to value each item you are putting up for sale -- including the business equipment and fixtures -- and get the most you can before closing down. Contact an accountant and a lawyer before liquidating your business.The liquidator will normally have a duty to ascertain whether any misconduct has been conducted by those in control of the company which has caused prejudice to the general body of creditors.In some legal systems, in appropriate cases, the liquidator may be able to bring an action against errant directors or shadow directors for either wrongful trading or fraudulent trading.