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Legal Definitions - wind up
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Definition of wind up
Definition: To sell or dispose of the assets of a corporation or partnership.
Example: After the company went bankrupt, they had to wind up their business by selling off all their equipment and property.
Explanation: When a company is no longer able to pay its debts, it may have to wind up its business. This means that the company must sell off all its assets, such as equipment, property, and inventory, in order to pay its creditors. The money raised from the sale of these assets is then used to pay off the company's debts.
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Simple Definition
Term: wind up
Definition: When a company or business is closing down, they may need to sell or get rid of all their things, like their buildings, equipment, and money. This is called "winding up" and it helps to pay off any debts the company might have.
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