creditors' voluntary liquidation
Definition
Sale of the assets of an insolvent firm by its stockholders (shareholders), without a statutory declaration of solvency and without involving any court procedure. Although it is initiated when the shareholders adopt a resolution for voluntary winding up of the business, it is the unsecured creditors who have the right to appoint the liquidator. See also members' voluntary liquidation.
creditors' voluntary liquidation is in the Banking, Commerce & Finance and Corporate, Commercial, & General Law subjects.
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