Liquidation process being a critical process to be taken on a crucial stage requires liquidation services. Let’s understand the importance of such liquidation services in this article.
A liquidation process is executed by a company only when it is under the burden of debt. The liquidation process starts by winding up and putting all the operations and transactions on hold.
The prime motive behind selling the assets of the company is to overcome its liabilities and fulfill all kinds of obligations. Usually, the liquidation process starts when the company is certain that the business is not generating profit and will not be able to continue. The key reasons for the liquidation of a company are insolvency, bankruptcy, unwillingness to continue business, etc.
When it is about winding up of a company, which is also known as liquidation that is the time when the role of liquidation service starts for the liquidation of assets. Once the decision of liquidation is finalized, the company is then listed as deregistered or closed. Please note that the liquidation services can be performed by the creditors or shareholders only after taking court’s permission except in case of voluntary liquidation.
Liquidation is simply disposing the assets and converting them into cash so that the debts can be paid off. Also, it includes the settlement of debts to unsecured creditors. After doing this, the remaining amount is then distributed among shareholders depending on the shareholdings. The process is meticulous and lengthy as well, hence, should be handled by the experts.
The liquidation process or the winding up of companies are of different types and based on the nature of the company and aspects related to it define the process with which the company will be liquidated. The major reason is the inability to pay off the debts, but apart from this there are different codes and regulations under which the liquidation process is approved and processed.
The procedure for liquidation of a company is mentioned under Section 270 of the Companies Act 2013. The processes that can be followed up for winding up is either Tribunal, or Voluntary.
Once, the request for liquidation is sanctioned by the authorities, some of the best liquidation services in India, offer to initiate the winding up of business by announcing a company’s entry into the liquidation process. This gives an assurance that all the statutory requirements are being followed. Accordingly, the resolution as per the company dissolution is prepared, without including its legal successor or any other related documents.
There are some prominent liquidation services in Gurgaon to handle the required registrations to the local Trade Registrar, and publish the information about the company’s liquidation in the Official Gazette. They keep updating the company status to all respective authorities and creditors. Resurgent India Limited is among those liquidation services in India that offer a wide range of liquidation, insolvency and other financial services to the clients.
