Liquidation (winding-up)

Liquidation is the process that follows the dissolution of a Turkish company. The company's assets are converted into cash, receivables are collected, debts are paid and the surplus is distributed to shareholders in proportion to their holdings.

The process is carried out by liquidators; the company adds the phrase in liquidation to its trade name and its capacity is limited to the liquidation purpose. Creditors are invited by public announcement to submit their claims, and the statutory waiting period must be observed. At the end, the company is deleted from the trade registry and its legal personality ceases.

If assets or claims surface after deletion, a supplementary liquidation may be ordered, and incomplete matters may require reinstating the company. The duty to retain books and records for the statutory period survives the liquidation.