Legal Definitions - readjustment

Definition: Readjustment is when a company that is having financial problems decides to reorganize itself without the help of a trustee or receiver. This is done voluntarily by the shareholders of the company.

Example: ABC Corporation is struggling financially and its shareholders decide to come together and make changes to the company's structure and operations to improve its financial situation. This is an example of readjustment.

Explanation: Readjustment is a way for a company to avoid bankruptcy and financial ruin by taking control of its own reorganization. Instead of relying on outside help, the shareholders work together to make changes that will hopefully improve the company's financial situation. This can include things like cutting costs, restructuring debt, or changing the company's business model.