Legal Question in Business Law in Illinois

Re: Plan of liquidation

A plan of liquidation is simply a document approved by the shareholders of a corporation that spells out how the corporation will dispose of its assets and liabilities before it terminates its existence. For a small corporation with enough assets to cover all its liabilities, the entire plan is often just a page or two. I have done several plans that were under two full pages.

For insolvent companies, the plan can be considerably more complicated.

David K. Staub, an Illinois business attorney