Liquidation example sentences

Preference shareholders have a preferential right of repayment over equity shareholders in the event of liquidation of a company; Preference capital does not create any sort of charge against the assets of a company.Therefore, there is no burden on the company in this respect; Equity capital serves as permanent capital as it is to be repaid only at the time of liquidation of a company.Some of the assets may not realise the stated values, if the liquidation is forced on the company.receiving a fixed rate of dividend, out of the net profits of the company, before any dividend is declared for equity shareholders; and receiving their capital after the claims of the company's creditors have been settled, at the time of liquidation.