Compulsory Liquidation
/kəmˈpʌlsəri ˌlɪkwɪˈdeɪʃən/
Definitions
- (n.) A court-ordered process in which a company is legally compelled to wind up its affairs and liquidate its assets for the benefit of creditors.
The court granted compulsory liquidation after the company failed to repay its debts.
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Commentary
Compulsory liquidation is distinct from voluntary liquidation in that it is initiated by a court order rather than by the company itself or its shareholders.
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