Why choose accounting recervership and liquidation when face financial distress???????
This method is adopted by corporate bodies when their liabilities exceed their assets and when they become non functional. If the company does not opt for the above methods, then it would have to face a number of litigation's filed by creditors in Law courts and also the burden of interest on the liability will go on increasing.
If the company opts for liquidation, no case can be filed by the creditors against the company for recovery of money and further all pending cases also automatically gets closed, and the poor creditors have to wait for liquidation to get their dues (incidentally they may get a fraction of the amount due !!!) |
