EXAMINERSHIP Meaning and
Definition
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Examinership is a legal process available in some jurisdictions, primarily Ireland, that allows a financially troubled company to temporarily protect itself from its creditors while seeking to restructure its debts and operations in order to ensure its survival and long-term viability.
During examinership, a qualified independent examiner is appointed by the court to assess the company's financial position, operations, and prospects. The examiner then develops a proposal, known as a scheme of arrangement, which outlines a plan to reorganize the company's affairs and repay its debts. This scheme must be approved by the court and a majority of the company's creditors.
Examinership provides the company temporary protection from legal actions by creditors, such as foreclosure or repossession of assets, during the period of assessment and negotiation. It also allows the company to continue trading, maintaining vital contracts and relationships with suppliers, employees, and customers.
The purpose of examinership is to give the company an opportunity to secure its financial stability, protect jobs, and ultimately continue operating as a going concern. It aims to strike a balance between the interests of the distressed company and its creditors, ensuring a fair and equitable outcome for all parties involved.
If the scheme of arrangement is successfully implemented, the company emerges from examinership with a sustainable financial structure and a realistic plan for repayment, avoiding liquidation or bankruptcy. However, if the scheme is not approved or the company fails to meet its obligations, liquidation may be the only remaining option.
Examinership plays a crucial role in preserving struggling companies, stimulating economic recovery, and providing an alternative to drastic measures such as insolvency.
Common Misspellings for EXAMINERSHIP
- wxaminership
- sxaminership
- dxaminership
- rxaminership
- 4xaminership
- 3xaminership
- ezaminership
- ecaminership
- edaminership
- esaminership
- exzminership
- exsminership
- exwminership
- exqminership
- exaninership
- exakinership
- exajinership
- examunership
- examjnership
Etymology of EXAMINERSHIP
The word "examinership" originates from the term "examiner", combined with the suffix "-ship". "Examiner" comes from the Latin word "examinare", meaning "to weigh, examine, or test". The role of an examiner is to thoroughly investigate and evaluate a particular matter or situation. The addition of the suffix "-ship" forms a noun denoting the state, condition, or office of an examiner. So, "examinership" refers to the condition or status of being an examiner.
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