A liquidation agreement is a contract between partners in a business through which the parties dissolve the partnership and liquidate all of its assets. You want to end your business partnership and would like to agree with your partners on the process of terminating your joint business. Rocket Lawyer is not a law firm or a substitute for an attorney or law firm. Use of Rocket Lawyer is subject to our Terms of Service and Privacy Policy. All section headings are for reference purposes only and in way define, limit, construe or describe the scope or extent of the respective sections. With a drag along, majority investors have the possibility to force the minority investors to cooperate with a sale of all the shares. After all: if the minority resists a sale, this can still prevent the company from being sold entirely. Use effective interview questions and screen them well. Training a good assistant takes time and long hours together, and having to replace that person is an expensive and consumptive process.

In order to participate as a seller in an auction or sales event, you must. In the UK, many companies in debt decide it is more beneficial to start again by creating a new company, often referred to as a phoenix company. In business terms this will mean liquidating a company as the only option and then resuming under a different name with the same customers, clients and suppliers. In some circumstances it may appear ideal for the directors; however, if they trade under a name which is the same or substantially the same as the company in liquidation without approval from the Court, they will be committing an offence under S216 of the Insolvency Act 1986 (and equivalent legislation in UK regions). Persons participating in the management of the 'phoenix' company may also be held personally liable for the debts of the company under s217 of the Insolvency Act unless the Court approval has been granted. In the UK, many companies in debt decide it is more beneficial to start again by creating a new company, often referred to as a phoenix company. In business terms this will mean liquidating a company as the only option and then resuming under a different name with the same customers, clients and suppliers.