Likvidatsiya

Likvidatsiya is a Russian term that translates to "liquidation" in English. It refers to the process of winding up a company or organization. This typically involves selling off all assets, paying off debts and liabilities, and distributing any remaining funds to shareholders or members. Liquidation can be voluntary, initiated by the company itself, or involuntary, often ordered by a court due to insolvency or other legal reasons. The primary goal of liquidation is to cease the entity's operations and settle its financial obligations.

There are two main types of liquidation: voluntary and compulsory. Voluntary liquidation occurs when the shareholders or members of a company decide to close it down. This is usually done when the company is no longer profitable or has achieved its objectives. Compulsory liquidation, also known as forced liquidation, is initiated by creditors or regulatory bodies when a company is unable to meet its financial obligations or has violated legal requirements. In this case, a liquidator is appointed by the court to manage the process.

The liquidation process involves several key steps. First, a liquidator is appointed to oversee the winding-up. This individual is responsible for identifying and gathering all company assets, selling them, and using the proceeds to pay off debts. Creditors are notified of the liquidation and invited to submit claims. Once all debts are settled, any remaining assets are distributed among the owners or shareholders according to their respective shares. The company is then officially dissolved.