Liquidation is an official insolvency process that involves the termination of a company (also known as “winding up” or “closing” a company). The process entails selling all of the company’s assets and using the proceeds generated from the sales to pay off its debts, and expenses, and distribute any remaining funds to the shareholders.
Company Liquidation in Dubai can be sought by shareholders or creditors and fall into two categories:
When a partner files a case without the other partners present, the process of compulsory liquidation begins by court order, and the firm’s creditors may also request its dissolution, which results in a similar sort of liquidation.
Shareholders’ decisions to discontinue corporate operations may result in voluntary liquidation. For the process to be started, a resolution must be enacted, and a liquidator must be chosen.