Define liquidating assets
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 following bankruptcy, which may result in the court creating a "liquidation trust") or voluntary (sometimes referred to as a shareholders' liquidation, although some voluntary liquidations are controlled by the creditors).
Finally, shareholders receive any remaining assets, in the unlikely event that there are any.
In such cases, investors in preferred stock have priority over holders of common stock.
The assets and property of the company are redistributed.
The court may dismiss the application if the petitioner unreasonably refrains from an alternative course of action.It only remains operational in order to complete the liquidation.The liquidator has the power of the company and company employees are dismissed.For efficiency's sake, it will often sell these at a discount to a company specializing in real estate liquidation instead of becoming involved in an area it may lack sufficient expertise in to operate with maximum profitability.When liquidation occurs the company does not have the power to dispose of its property.