Legal Definitions - winding up

Definition: Winding up refers to the process of settling debts and selling off assets in order to dissolve a partnership or corporation.

Example: When a company goes bankrupt, it must go through a winding up process. This involves selling off any assets that can be sold, paying off creditors, and distributing any remaining funds to shareholders.

Explanation: Winding up is the process of closing down a business and distributing its assets and funds. This can happen for a variety of reasons, such as bankruptcy, retirement of the business owner, or a decision to dissolve a partnership. The goal of winding up is to settle any outstanding debts and distribute any remaining funds to the appropriate parties.