The Compulsory Liquidation Bylaw of 2023 has been published in the Official Gazette. Under this promulgated regulation, commonly recognized as the winding-up or insolvency legislation, a crucial provision stipulates that in the event of a company’s liquidation, should cash assets remain accessible, the liquidator is obligated to reimburse any previously disbursed amounts from the company’s account. Furthermore, disbursements made from the company’s account are designated for the reimbursement of legal fees and expenses incurred in the pursuit of recovering the company’s funds, asserting its rights, or filing a declaration attesting to the insufficiency of available cash and the infeasibility of asset liquidation. Pursuant to the bylaw, it is strictly prohibited to expend more than 10 percent of the available cash in the company’s account for each instance of liquidation. The Compulsory Liquidation Bylaw, an instrument prescribed by statutory company laws, serves the purpose of terminating the operations of a specific company when it is in a state of financial insolvency, rendering it incapable of fulfilling its financial obligations or conducting business in a customary manner.
Source: Jordan News Agency