Liquidation Of Companies

Order of Settlement of Liabilities

  1. Legal Expenses Order of Payment of Liabilities
  2. Liquidators Remuneration
  3. Liquidators Expenses
  4. Secured Creditors having fixed charge
  5. Order of liquidation of the creditors
  6. Preference Share Holders
  7. Equity Share Holders

Liquidators Remuneration may be

  • Lump Sum
  • Fixed % on asset realised
  • Fixed % on amount paid to Creditors

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