Definition of Winding up:
Method of dissolving a business by selling off its assets and satisfying the creditors from the proceeds of the sale. Three common types of windings up are (1) Members voluntary winding up, (2) Creditors voluntary winding up, and (3) Compulsory winding up. Called liquidation in the US, it is not the same as bankruptcy or business failure.
The term is used primarily in Great Britain, where it is synonymous with liquidation.
Winding up is the process of dissolving a company. While winding up, a company ceases to do business as usual. Its sole purpose is to sell off stock, pay off creditors, and distribute any remaining assets to partners or shareholders.
How to use Winding up in a sentence?
- A company that is winding up ceases to do business as usual.
- Its sole purpose is to sell off assets, pay off creditors, and distribute any remaining assets.
- Winding up a business is not the same as bankruptcy, although it is usually an end result of bankruptcy.
Meaning of Winding up & Winding up Definition