What happens when a Saudi company goes bust
What happens when a company gets into difficulties and has no option but to cease trading? Often, the answer is that it goes into liquidation.
This may be simply defined as the process by which a companys operations are brought to an end, and its property and assets redistributed. One of the aims behind liquidation is to recoup as much as possible of the money owed to the companys partners, who have priority access to the cash once their creditors are paid and they have fulfilled any other obligations.
Under Saudi law, when a company is wound up it is immediately in liquidation. The first task is to appoint liquidators. By law, while the directors of the company have no more power, they may …
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