OPERATIONS DURING LIQUIDATION Clause Samples
The "Operations During Liquidation" clause defines how a company's business activities are managed while it is undergoing liquidation. Typically, this clause outlines the limitations on new business, the handling of existing contracts, and the authority of liquidators to manage or wind down operations. For example, it may specify that the company can only conduct activities necessary to preserve assets or settle outstanding obligations. The core function of this clause is to ensure an orderly and controlled process during liquidation, protecting the interests of creditors and stakeholders by preventing unauthorized or risky business activities.
OPERATIONS DURING LIQUIDATION. Upon the determination that the Company is to be dissolved and liquidated, the business of the Company during the period of liquidation shall be carried on by the Governors, or by a designee of the Governors, who shall possess all the powers of the Governors to the extent necessary to wind up the business and affairs of the Company.
OPERATIONS DURING LIQUIDATION. Upon the determination that the Company is to be dissolved and liquidated, the business of the Company during the period of liquidation shall be carried on by the Managing Member, or if there be no Managing Member, by a designee of the Investor Members selected by Consent of the Members, who shall possess all the powers of the Managing Member to the extent necessary to wind up the business and affairs of the Company.