Terminate Liquidation Clause Samples

Terminate Liquidation. Liquidation shall be carried out immediately when Service Company is terminated due to the expiration of terms or the decision of termination in advance. The shareholders’ meeting shall form the liquidation committee consisted of the Board of Directors within 15 days after Service Company is terminated due to the expiration of terms or the decision of termination in advance to liquidate the assets of Service Company in accordance with the provisions of relevant Chinese laws. After the liquidation, the assets of Service Company shall be distributed in the following order: 1) payment of unpaid liquidation expenses; 2) payment of unpaid wages and expenses for labor insurance of the employees, 3) payment of unpaid taxes; 4) payment of the principal and interests of the debts; 5) distribution of the residual assets. The residual fixed assets, liquid assets, rights and interest of Service Company shall be distributed by Shareholders in proportion to their capital contribution. Except the debts borne by Party A in proportion to its capital contribution, Party A is not liable for any other debt.