Voluntary Dissolution
/ˈvɒlənˌtɛri dɪsəˈluʃən/
Definitions
- (n.) The process by which a corporation or other legal entity ceases operations and liquidates assets at its own initiative, rather than by court order or external mandate.
The board approved the voluntary dissolution of the company to settle its debts and distribute remaining assets.
Forms
- voluntary dissolution
Related terms
See also
Commentary
Typically involves shareholder or member approval and statutory compliance; distinct from involuntary dissolution initiated by creditors or courts.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.