In the event of a corporations liquidation, which group of persons would receive any surplus funds after all creditors have been paid?

Question

Quizplus · Accepted Answer

Whatever the corporate charter or by-laws dictate will determine who receives any surplus funds after all creditors have been paid. It may be specified that preferred shareholders, bond holders, or both preferred and common shareholders receive any surplus funds, but it ultimately depends on the specific regulations outlined in the corporate charter or by-laws. Management would not typically be entitled to receive any surplus funds.

In the Event of a Corporations Liquidation, Which Group of Persons