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Liquidator Meaning: Definition, Examples, and Translations

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liquidator

[ˈlɪkwɪˌdeɪtər ]

Definition

Context #1 | Noun

finance

A person or company that is appointed to wind up the affairs of a company that is closing down, ensuring that all debts are paid and any remaining assets are distributed to the shareholders.

Synonyms

administrator, receiver, trustee.

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Word Description / Examples
liquidator

This term is often used in legal and financial contexts where a person or entity is responsible for winding up the affairs of a company that is closing down, distributing its assets to creditors, and dissolving the company.

  • 'The liquidator assessed the company's assets to determine how to distribute them
  • '
administrator

This word is generally used in broader contexts to describe someone who manages or is in charge of the day-to-day operations of an organization, be it a business, educational institution, or other entities.

  • 'The school administrator organized the annual festival
  • '
receiver

Receivers are appointed to manage the financial assets and property of a company that is facing bankruptcy, primarily to recover any outstanding debt owed to creditors.

  • 'The receiver took control of the company's assets to pay off creditors
  • '
trustee

A trustee is someone who holds and manages assets or property for the benefit of another party under a trust agreement. This term is common in legal, financial, and estate planning contexts.

  • 'The trustee managed the estate according to the terms of the will
  • '

Examples of usage

  • The liquidator was responsible for selling off the company's assets.
  • The liquidator worked tirelessly to settle all outstanding debts.
  • The liquidator's main goal was to ensure a fair distribution of assets to the shareholders.

Translations

To see the translation, please select a language from the options available.

Interesting Facts

History

  • Liquidators became particularly significant during the Great Depression when many businesses failed and needed to settle debts quickly.
  • In post-Soviet Russia, liquidators were essential in managing company closures and privatization processes after the fall of the USSR.
  • The role of liquidators often involves complex legal processes, particularly in bankruptcy cases, dating back to early 20th-century corporate law reforms.

Pop Culture

  • In films, liquidators are sometimes portrayed as ruthless, heartless figures, showcasing the harsh realities of business failures.
  • The 2010 film 'The Company's Coming' features a storyline about a liquidator dealing with a crumbling restaurant, highlighting the dramatic decisions made during such times.
  • Television shows that focus on business often depict liquidators as important characters when addressing failing businesses.

Law

  • Liquidators play a crucial role in the liquidation process, which may involve auctions, negotiations, and assessing asset value.
  • There are two main types of liquidators: voluntary and compulsory, depending on the context of the business closure.
  • Legal systems around the world have specific regulations governing how liquidators operate, ensuring fair treatment of creditors and stakeholders.

Finance

  • In finance, the process of liquidation can vary from selling off physical assets to ceasing business operations entirely.
  • Companies may hire liquidators to help recover maximum value from distressed assets during bankruptcy proceedings.
  • Liquidators often provide transparency to creditors regarding the distribution of proceeds generated from sold assets.

Origin of 'liquidator'

Main points about word origin

  • The term 'liquidator' comes from the root word 'liquidate,' which means to convert assets into cash.
  • Originating in the early 20th century, the word 'liquidate' has roots in the Latin 'liquidare,' meaning 'to make liquid.'
  • Originally, the use of 'liquidate' was heavily connected to financial transactions and has evolved into its current broader sense.

The term 'liquidator' originated from the Latin word 'liquidare', which means 'to melt' or 'to dissolve'. In the context of finance, a liquidator is responsible for dissolving a company by selling off assets and settling debts. The role of a liquidator is crucial in ensuring a fair distribution of remaining assets to the shareholders.

See also: liquefiable, liquefy, liquidate, liquidation, liquidity, liquidized, liquidizer, liquids.

Word Frequency Rank

With rank #18,483, this word belongs to specialized vocabulary. While not common in everyday speech, it enriches your ability to express complex ideas.