selvitystila

== Finnish == === Etymology === selvitys +‎ tila === Pronunciation === IPA(key): /ˈselʋitysˌtilɑ/, [ˈs̠e̞lʋit̪ys̠ˌtilɑ̝] Rhymes: -ilɑ Syllabification(key): sel‧vi‧tys‧ti‧la Hyphenation(key): sel‧vitys‧tila === Noun === selvitystila (law, business) administration, receivership, (when voluntary) liquidation; a state in which a corporation (e.g. a company, cooperative or foundation), suspected of being insolvent, either out of their own will or by being externally imposed, has its assets and liabilities enumerated, usually (but not necessarily) ending in bankruptcy and complete liquidation when the liabilities exceed the assets and the company is determined to be insolvent, or in voluntary liquidation without bankruptcy. Synonym: suoritustila ==== Usage notes ==== Many sources suggest translating selvitystila into English as liquidation, but this translation is not necessarily accurate. Most companies ending up in selvitystila do end up bankrupt and entirely liquidated, but this is not necessarily the case, and the selvitystila may get lifted if the company proves solvent after all (and does not wish to dissolve). For this reason, administration and receivership are more accurate translations, although no exact translation exists due to the differences in legal systems. This issue is further complicated by the following points: selvitystila often involves at least a partial liquidation of assets in order to pay back debts. selvitystila is usually initiated voluntarily (by e.g. a shareholder's meeting in the case of limited-liability companies, osakeyhtiö), and may result in the entity dissolving even if it is able to pay its debts, with any remaining assets being liquidated among the shareholders. This may in fact be more common than the company 'surviving' a selvitystila and continuing its operations, as it is the primary means to shut down a solvent company (voluntary liquidation). If an entity proves to be insolvent, selvitystila is followed by konkurssi (“bankruptcy”), which results in complete liquidation and subsequent dissolution. ==== Declension ==== ==== See also ==== selvitysmies (“administrator, receiver”) konkurssi (“bankruptcy”) === Further reading === “selvitystila”, in Kielitoimiston sanakirja [Dictionary of Contemporary Finnish]‎[1] (in Finnish) (online dictionary, continuously updated), Kotimaisten kielten keskuksen verkkojulkaisuja 35, Helsinki: Kotimaisten kielten tutkimuskeskus (Institute for the Languages of Finland), 2004–, retrieved 3 July 2023