Dissolution_and_liquidation Flashcards
1
Q
- What triggers company dissolution?
A
o Expiry, bankruptcy, mutual agreement, or court decision.
2
Q
- What is the effect of dissolution?
A
o Commencement of liquidation unless merging or restructuring
3
Q
- What is liquidation?
A
o Selling assets, settling debts, and distributing remaining funds.
4
Q
- Who manages liquidation?
A
o Official receivers or liquidators appointed by associates or courts.
5
Q
- What are the steps in liquidation?
A
o Inventory, balance sheet preparation, and asset distribution.
6
Q
- What is the timeframe for liquidation?
A
o Must be completed within three years, extendable by two years.
7
Q
- What happens if liquidation fails?
A
o The company may enter bankruptcy proceedings
