Priorities of Creditors During Liquidation

 Due to ongoing fraud, assets constantly pose a danger of losing all of your investments. There have been numerous instances where an entity that has invested money in a corporation quickly learns that the company has vanished or has been liquidated. It frequently occurs that the nervous parties are worried about the method that must be completed to complete the list of Creditors. It may be agreed upon by the parties to the Agreement together with the approval of the payment of such a form of debt recovery.

The rationale for liquidation

On the other side, there are specific tasks that the liquidators must complete. The UAE Companies Law No. 8 of 1984 indicates that the goal of liquidation is to ensure that all of the company's dealings have been approved with due diligence. This comprises:

• Acceptance of all completed business contracts

• Indicate or otherwise arrive at a conclusion

• The conclusion of the company's operations

• Identifying any legal defenses

• Publicity for connected properties

• The collection of debts owed to the business.

• Contract out any money owed to creditors and share assets on a recurrent basis with shareholders.

As a result, through the Dubai Courts, creditors may continue to exercise their legal claims for compensation from the company that is in liquidation. One must seek legal counsel if one wants more information on how to proceed with officially sanctioned debt collection procedures in Dubai.