Understanding the Responsibilities of Liquidators


Every country has several laws in order to keep the system going and govern the country. Liquidation falls under one of these laws, where the administration constitutes on a proceeding that is stated as the company law or known as Federal Decree-Law No. 2 of 2015.

When an organization is about to cease to exists the liquidation process takes place, where all of this process is established upon by the stakeholders. Company liquidation in Dubai requires a reliable and experienced liquidator, who is hired for definite procedures to instigate.

Role of the Liquidator
There are several companies that are unable to succeed, and sometimes they undergo shutting down or even liquidation. Here, the role of a liquidator is to handle these kinds of matters cautiously and litigate the creditors their due amount by checking all the assets of the liquidating company.

The liquidator is hired either by the company owner or the stakeholder or court that issues the company the liquidation orders.

A responsibility of a good liquidator is to collect all the assets of an organization and settles any debts being used as the assets. The remaining assets are distributed among the stakeholders to cover outstanding debts.

When an organization is at the liquidation stage,  the company goes through a certain procedure which need to be followed, which is why the organizations are always provided with a good liquidator as they can help in making the liquidation process a lot easy and smoother for both owners and the shareholders.

There are two types of Liquidation process that can be handled by a reliable company formation consultants in Dubai having experience in liquidation.

Voluntary Liquidation
This is filed when the owner anticipate that their business isn’t running perfectly and the chances of it getting back are slim to none. Voluntary liquidation directly eradicated the possibility of a forced liquidation or facing any kind of false accusations. This type of liquidation aids in the company owners calling the creditors for deciding the kind of liquidation to be filed.

Compulsory Liquidation
This serves as an obligatory liquidation when the shareholders or company owners are unable to handle the matters. This type of liquidation occurs when a court orders for liquidation of a company. Mostly, creditors are the ones that are known to request for the liquidation of a company in order to get their debt back, and this falls in the false pretenses of accusation that can damage the reputation.

Location: United Arab Emirates

Comments

  1. Mohit KumarMarch 26, 2021 at 2:06 AM

    Nice post! This is very informative and knowledgeable article that's way I would like to say thanks for your efforts you have made in this post
    Company Liquidation in Dubai | Liquidation Services in the UAE

    ReplyDelete
  2. Best Advocate in DubaiJuly 9, 2021 at 1:00 AM

    Thanks for the Informative and Interesting Article. I would like to add something for them who look up for any legal services. Our aim is to give single tick access to people and organizations for all their legitimate and expert needs.
    liquidators in dubai

    ReplyDelete

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