Legal Question in Business Law in Illinois

Plan of liquidation

Can anyone tell me what a plan of liquidation is. I was told that I need one to dissolve my family business.

Asked on 11/14/06, 5:07 pm

1 Answer from Attorneys

David K. Staub Staub Anderson LLC

Re: Plan of liquidation

A plan of liquidation is simply a document approved by the shareholders of a corporation that spells out how the corporation will dispose of its assets and liabilities before it terminates its existence. For a small corporation with enough assets to cover all its liabilities, the entire plan is often just a page or two. I have done several plans that were under two full pages.

For insolvent companies, the plan can be considerably more complicated.

David K. Staub, an Illinois business attorney

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Answered on 11/18/06, 12:44 am

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