winding up

Definition:

the process of bringing an end to a company (either incorporated or unincorporated) or a non-profit-making association or any scheme for which financial transactions have occurred. The process involves settling all claims against the entity being wound up, which usually involves converting its assets into money, and paying contributed capital and any surplus assets to the owners or beneficiaries of the entity. Also called ‘liquidation’. See the entries for ‘compulsory winding up’ and ‘voluntary winding up’.



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