Liquidation is a process that the company is ending up its whole process and they have to be finalized their document. One can liquidate the company because their goods were not sealed properly and another reason is that the company has the poor ability to run the concerned company. Liquidation is of two types they are the voluntary liquidation and the compulsory liquidation. Some of the small business associations cannot have the knowledge that how to wind up the company and some of them ask how much does it cost to liquidate a company For this, the answer is regarding the company’s status. If it is a small company the amount will be decreased among the shareholders and if the company is having many recognition and the amount will be high for the process of liquidation. Once the liquidation process is completed the company wants to repay all the pending amounts to the employees and as well as the shareholders. In some cases the shareholders came forward to buy the company in such cases it is easy for the company’s chairperson to give all the shares to the people.
Types of liquidation and conditions
There are two types of liquidation one is the voluntary liquidation and the other one is compulsory liquidation. Involuntary liquidation of the company or the person who is in the general position can be decided to wind of a company for personal reasons. In such cases, they want to arrange a meeting with all the persons in the company and asked their suggestion once before they make a decision and they finalize the liquidation process. It is the easiest process for the company to return the shares for the persons and the shareholders if they choose the voluntary liquidation. The second thing is the compulsory liquidation, in compulsory liquidation the company is under the pressure and they cannot do anything like the voluntary liquidation. In compulsory liquidation, the concerned person has taken a case in the court and the court had given the notice for the liquidation of the company. If they do not liquidate the company within the concerned time of the court then they will give an additional penalty for that period. The person who took a case is the shareholder of the concerned company or the person who demands money that the company did not pay the concerned money. The period for the compulsory liquidation is 21 from the court order and they have to shift or handover the company to the concerned person who took against for the company, after two weeks they received the challan after that they have any rights towards the company or the shares itself. The liquidation process might be done whether the person is unavailable to run the company or else he or she wants to handover the company with others for some reason. In many cases, the liquidation process is done if the goods are stayed back in their company, if they choose the choice of liquidation the company who is willing to buy will buy the goods for a cheap rate it is very easy for the company to windup by their own choice.