Liquidation/dissolution of a limited liability company. - SS1 Commerce Past Questions and Answers - page 1
What is the purpose of liquidating a limited liability company?
To restructure the business
To wind up and close down the company
To attract new investors
Who is responsible for overseeing the liquidation process?
Shareholders
Creditors
Liquidator
What is the first step in the liquidation process?
Settling liabilities
Appointing a liquidator
Distribution of remaining funds
What happens to the company's assets during the liquidation process?
They are gathered and evaluated for sale or distribution
They are returned to shareholders
They are donated to charity
What are the legal formalities involved in the liquidation process?
Filing tax returns
Cancelling employee contracts
Complying with government notifications
What is the role of a liquidator in the liquidation process of a limited liability company?
The liquidator is responsible for overseeing the entire liquidation process, including asset valuation, debt settlement, and distribution of remaining funds.
Why might a limited liability company decide to liquidate?
A limited liability company may decide to liquidate due to reasons such as financial difficulties, loss of market demand, completion of business objectives, or a desire to exit the business.