704(c)(1)(B)); (3) the distribution is within seven years after a contribution of appreciated property (see Sec. He has never contributed property other than cash to the LLC.
This is usually the case in bankruptcy liquidations.
Creditors are always senior to shareholders in receiving the corporation's assets upon winding up.
If the company is profitable and industry is growing too, the company’s liquidation value will normally be much lower than the share price, since share price factors growth aspect which liquidation value does not.
For companies going through a decline phase or if the industry is dying, the share price may be lower than the liquidation value; this would logically mean that the company should shut business.
Running this blog since 2009 and trying to explain "Financial Management Concepts in Layman's Terms".