2 definitions found for this term.
Definitions are presented in the order source books were published (most recent first).


Termination of the firm as a going concern.

The process of gathering in all the assets of a corporation, selling them or otherwise converting them into cash, and then paying off all of the corporation’s liabilities, with any remaining amount being paid to shareholders in accordance with their entitlements established in the share provisions in the corporation’s articles. Sometimes liquidation is described as winding up the corporation. Usually liquidation is followed by the dissolution of the corporation.

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