Tasfiye

Tasfiye is a Turkish noun meaning liquidation, winding up, or settlement of accounts. Derived from tasfiya, the term suggests purification or clearing, and it is used in legal, financial, and administrative contexts to denote the process of dissolving an entity, liquidating its assets, and settling its obligations.

In corporate governance, tasfiye refers to winding up a company. This occurs when the business becomes insolvent or its owners decide to cease operations. A tasfiye memuru (liquidator) is appointed to oversee the procedure. The liquidator collects and realizes the company’s assets, pays debts and liabilities in the approved order, and distributes any remaining assets to shareholders. After all assets are realized and claims settled, the company is formally dissolved and deregistered. The process is governed by applicable commercial and insolvency law, with defined steps and protections for creditors.

Tasfiye also applies to the settlement of an estate after a death. In this context, it involves inventorying the decedent’s assets, paying debts and taxes, and distributing the remaining assets to heirs or beneficiaries, usually under a will or according to inheritance law, and often under probate supervision or court oversight.

Beyond business and estates, tasfiye can be used in a broader social or political sense to denote the removal or purge of individuals, groups, or institutions from public life. Depending on context, this usage can be neutral or carry negative connotations.