Legal Dictionary of Pakistan
Quick lookup for English, Urdu, and Latin legal terms used in Pakistani jurisprudence.
Liquidation
n. 1. The act of determining by agreement or by litigation the exact amount of something (as a debt or damages) that before was uncertain. 2. The act of settling a debt by payment or other satisfaction. 3. The act or process of converting assets into cash, esp. to settle debts. one-month liquidation. A special election, available to certain shareholders, that determines how the distributions received in liquidation by electing shareholders will be treated for federal income-tax purposes. ( To qualify for the election, the corporation must be completely liquidated within one month. IRC § 333 (26 USCA § 333).
distribution in liquidation
See liquidating distribution under DISTRIBUTION.
liquidation dividend
A dividend paid to a dissolving corporation's shareholders, usu. from the capital of the corporation, upon the decision to suspend all or part of its business operations. - Also termed liquidating dividend.
liquidation preference
A preferred shareholder's right, once the corporation is liquidated, to receive a -specified distribution before common shareholders receive anything. voidable preference See PREFERENTIAL TRANSFER.
liquidation price
See PRICE.
liquidation value
See VALUE.
one-month liquidation
See LIQUIDATIOI
partial liquidation
See LIQUIDATION.
twelve-month liquidation
A liquidation occurring within 12 months from adoption of the liquidation plan to complete liquidation, subject to a tax law prohibiting the company from recognizing any gains or losses on property sold within that time frame. ( Generally, inventory will not be included unless a bulk sale occurs. IRC (26 USCA) § 337. 4. Bankruptcy. The process - under Chapter 7 of the Bankruptcy Code - of collecting a debtor's nonexempt property, converting that property to cash, and distributing the cash to the various creditors. 0 Upon liquidation, the debtor hopes to obtain a discharge, which releases the debtor from any further personal liability for prebankruptcy debts. Cf. REHABILITATION (3).