Liquidation rights

Liquidation rights

The rights of a firm's securityholders in the event the firm liquidates.

Liquidation Right

The right of certain stakeholders in a firm to receive the proceeds of the firm's liquidation. Liquidation rights vary according to a hierarchy; that is, interested parties higher in the hierarchy have the right to receive all their proceeds before those lower in the hierarchy. Generally speaking, secured creditors have the highest liquidation rights, followed by general creditors, preferred stockholders, and, finally, common stockholders. See also: Bankruptcy.
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The new Series D convertible preferred stock ranks senior to all existing preferred and common stock of the Company with respect to dividend rights, redemption rights and liquidation rights.
These early members will enjoy special privileges and benefits, including liquidation rights should the Club cease operations in a few years.
The University Hospital of Cologne intends invoicing for the services from the inpatient and outpatient treatment from private doctors who have assigned the liquidation rights of the university hospital to be awarded to an external accounting firm.
what I call liquidation rights, or options to convert assets to cash.
For example, in a stock-for-stock exchange, the newly issued stock could have distribution or liquidation rights that differ from the original outstanding stock.
Other issues to be heard by the division, regardless of the amount in controversy, include: Internal affairs or governance, dissolution or liquidation rights, obligations between or among owners (shareholders, partners, members), or liability or indemnity of managers (officers, directors, managers, trustees, or members or partners functioning as managers) of corporations, partnerships, limited partnerships, limited liability companies or partnerships; trade secrets and non-compete agreements; intellectual property; securities or state securities laws; antitrust statutes; shareholder derivative actions and related class actions; and corporate trust affairs or director and officer liability.
We find first that VC financings allow VCs to separately allocate cash flow rights, voting rights, board rights, liquidation rights, and other control rights.
Giving a special class of stock with unusually large dividends or favorable liquidation rights to a foreign official who is an equity investor could also be questioned.
Chapter 14 treats the lapse of certain voting and liquidation rights as a transfer and ignores certain options, restrictions, and agreements in determination of the value of transferred interests in partnerships and corporations.
IRC section 2704 treats a lapse of voting or liquidation rights as a taxable gift or bequest.
The fractional share has voting, dividend, and liquidation rights that make it the economic equivalent of one common share.