By liquidating

If the stock is a capital asset in the shareholder’s hands, the transaction qualifies for capital gain or loss treatment.

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331 when they receive the liquidation proceeds in exchange for their stock.

If the corporation distributes its assets for later sale by the shareholders, the assets generally “come out” of the corporation with a basis equal to FMV (and with the related recognition of gain or loss under Sec.

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In United Kingdom and United States law and business, liquidation is the process by which a company (or part of a company) is brought to an end, and the assets and property of the company are redistributed.

The court may dismiss the application if the petitioner unreasonably refrains from an alternative course of action.

Selling a company to an interested buyer is the method most commonly associated with getting out of a business.

It can take account of personal relationships of mutual trust and confidence in small parties, particularly, for example, where there is a breach of an understanding that all of the members may participate in the business, Upon hearing the application, the court may either dismiss the petition, or make the order for winding-up.

This is used, for instance, when a retail establishment wants to close stores.

They will sell to a company that specializes in store liquidation instead of attempting to run a store closure sale themselves.

Liquidation allows you to bring an Insolvent company to an end.

Collins English Dictionary - Complete & Unabridged 2012 Digital Edition © William Collins Sons & Co.