Likvidálás

Likvidálás is a Hungarian term that translates to "liquidation" in English. It generally refers to the process of winding up a business or company, typically when it is insolvent or ceasing operations. This involves selling off all assets to pay off creditors and any remaining funds are distributed to owners or shareholders. The primary goal of liquidation is to terminate the legal existence of the entity. There are different types of liquidation, including voluntary liquidation, which is initiated by the company itself, and compulsory liquidation, which is ordered by a court, often due to bankruptcy. During the liquidation process, a liquidator is appointed to manage the sale of assets and the distribution of funds. The process is governed by specific legal procedures to ensure fairness to all parties involved. It is a formal legal procedure with significant implications for the company's stakeholders.