Partial Liquidation Law and Legal Definition

Partial liquidation is a liquidation which does not dispose of all the property or wind up all the affairs of a corporation or an insolvent. It is a distribution by a corporation in cancellation or redemption of all or a part of the firm's stock.

Thus, partial liquidations refer to proceedings involving the surrender by a corporation of portions of its capital. [Smith v. Dana, 77 Conn. 543, 557 (Conn. 1905)].