administrative (adjective, ad-min-is-tra-tive, \ ədˈmɪnəstreɪtɪv \) dissolution (noun, dis-so-lu-tion, \ ˌdɪsəˈluːʃən \)
Definition: is an act of an involuntary suspension, a shutdown of a company. It is usually done by a governmental authority when a company fails to meet specific statutory requirements. For instance, when a company fails to file and provide annual reports on time, it may go through the administrative dissolution. When a business goes through this process, it no longer can continue its operation under any circumstances. It may be required to notify all of the partners, creditors, investors, and even customers about the administrative dissolution. Moreover, a business may have to liquidate all of its assets.
In a Sentence:
- In case of an administrative dissolution, we will have to divide all of the assets among the business partners.
- They were 60 days late with their annual report, which led to the administrative dissolution.
- If you don’t want to face an administrative dissolution, manage your company with precision and according to the statutory requirements.
Synonyms and related words: articles of dissolution, business entity, statutory requirements, government authority
