liquidation of a company

Compulsory liquidation of a company is when the company is ordered by a court to be wound up.

A liquidity event is not to be confused with the liquidation of a company, in which the company's business is discontinued.

The liquidator is the OR/IP appointed to administer the liquidation of a company or partnership.

Prior to the liquidation of a company, the defendant and one "H," the sole directors and shareholders, had sold the fixed property of the company.

By s. 2 of the 1986 Act the court may make a disqualification order where a person is convicted of an indictable offence in connection with the promotion, formation, management or liquidation of a company.

By way of illustration, in the event of a liquidation of a company, both the first lien and second lien loans would likely be repaid in full (along with trade and other general creditors) before the subordinated lenders receive any repayment of their obligations.

In some cases, such as on the partial liquidation of a company in accordance with the corporation law of the State of Maryland, such payments would have a capital nature (Rea v Lazzard Investment Co Ltd (1963) 41 TC 1).

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: