The benefits of company liquidation can certainly far outweigh the liabilities of such a business, which would plunge the organization into huge losses. If even after all their liabilities have been cleared, any of the business assets are still left lying with the creditors, then all these are liquidated, and finally the accumulated profits are distributed amongst the shareholders and the directors… Of course, this does not happen very often. This is because there are so many other things that need to be taken care of, such as making the business profitable and worthwhile once again!
However, if the business is brought back into profitability by getting rid of all these debts, then that will be good for everyone. The liquidator does his job well by getting rid of all the debts, provide accounting services in UAE and other problems.
- The first benefit of getting rid of all these problems is that the provider now has an opportunity to produce more goods and offer new services. This means a better profit for the business and better chances of getting customers.
- The second benefit is that if the debts are not removed, then the liquidator can sell the assets of debtors, consisting of computers, printers, various office equipment, hence, liquidation in Dubai is done. This asset is called uncategorized asset, and it belongs to the creditors. When these assets are sold, they will be able to recover at least part of their money that they had lent out to the debtors. This is what is called debt elimination in liquidation.
- A third benefit is that the liquidator can use the proceeds from the sale of assets to pay off the outstanding amounts that the creditors owe the debtors. Most often, it happens that the creditors do not get their payments on time from the companies. The cash given by the companies helps them in getting back on their feet.
- The fourth benefit is that legal action can be taken against the company assets through liquidation. There is no need to go for the court action. The liquidator can just make a deal with the creditors, based on the value of assets that they have accumulated.