Settlement priorities are clauses in the agreement that specify the arrangement of payments in the case of trade negotiations. Generally, investors or preferred shareholders of a company refund their money to other types of shareholders or lenders first, if the company needs to be injured. Settlement priorities are often used in venture capital contracts, payable, promissory notes, and privately made private equity transactions to help specify which investors should be paid in which order during an event. Will Closing, how to sell business.
- Settlement priority determines who is paid first and how much is paid if the company needs to close, for example, a B-sales company.
- Ordinary investors or shareholders are rejected before ordinary shareholders and debtors.
- Settlement preferences are often used in venture capital contracts.
Literal Meanings of Liquidation Preference
Meanings of Liquidation:
The company liquidation process.
Killing someone, usually through violence.
Sentences of Liquidation
Synonyms of Liquidation
collapse, crash, going under, bankruptcy, insolvency, liquidation, close-down, closure, closing, shutting down, winding up, termination, murder, taking of life, assassination, homicide, manslaughter, elimination, doing to death, putting to death, execution, dispatch, martyrdom
Meanings of Preference:
An alternative tastes better than any other.
Previous rights or preferences, especially those related to debt repayment.
Sentences of Preference
Choose the time, not the time
Debt for the community must come first
Synonyms of Preference
liking, partiality, predilection, proclivity, fondness, taste, inclination, leaning, bias, bent, penchant, predisposition, desire, wish, precedence, greater importance, preference, precedency, pre-eminence, first place, highest place, predominance, primacy