What is the process for corporate liquidation?

Corporate liquidation is the process of legally dissolving a corporation by selling off its assets and distributing them among investors. The process is carried out in Washington according to state law, and will vary depending on the type of corporation. Generally, the process begins when the corporation’s board of directors files a petition of liquidation with the state. This petition states the reasons for the dissolution and it must be approved by the state’s Attorney General. Once the petition is approved, the corporation must provide notice to its creditors and shareholders of the pending liquidation. This notice gives creditors an opportunity to file claims against the corporation. After settling any outstanding claims, the liquidator will begin selling off the assets of the corporation. These assets will be sold for cash or distributed to shareholders depending on the type of corporation and the provisions of the dissolution petition. Once all the assets have been liquidated, the remaining funds must be distributed among creditors and shareholders. This includes any profits from the sale of the assets. After all funds have been paid out, the corporation is officially dissolved. A certificate of dissolution must be filed with the state before the dissolution process is complete. This ensures that all former shareholders and creditors are released from any liability associated with the corporation.

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What is the process for corporate liquidation?

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