Companys debts, Business Law and Ethics

Companys debts:

In case a company is unable to pay its debts the creditors, or a creditor, may petition the High Court for an order to wind it up. During the winding up the members will be called upon to pay the amount which is unpaid on the shares they hold, if any, in the case of a company limited by shares, or the amount prescribed by the memorandum, in the case of a company limited by guarantee.

It should be noted that, in the case of a company limited by shares, what the members are paying are the amounts they owe to the company as its debtors in respect of shares that were sold to them on credit and have not been paid for in full. The company's liquidator will in turn use the money so paid to pay off, or reduce, the company's debts.

The other point to be noted is that a company's creditor cannot institute legal proceedings against a company's member in order to recover from him what he owes the company. This is because the member does not, legally,become his debtor merely because the company is his debtor.

Posted Date: 1/12/2013 2:02:30 AM | Location : United States







Related Discussions:- Companys debts, Assignment Help, Ask Question on Companys debts, Get Answer, Expert's Help, Companys debts Discussions

Write discussion on Companys debts
Your posts are moderated
Related Questions
Indicators of phoenix activity Stakeholders noted that there are a range of 'signals' or 'indicators' that phoenix activity may be about to occur. These generally occur before t

Problem I. Sandy has been working for Bean Canning Ltd for 9 years. Last Monday Sandy was called to the Manager's Office and verbally informed that her employment was termi

Judicial and Legislative Function of Chief Justice Judicial Function However a judge of the High Court and the court of Appeal he participates in the adjudicatory proce

State Article 3 of air and outer space law Article 3 refers to the fact that the Convention would be applicable to the civil aircraft only and not to the state aircraft. Also,

Commencement of Business: Section III (1) provides that a public company which has issued a prospectus cannot commence business or exercise any borrowing powers unless:-

Administrative Function of Chief Justice Where, he is the principal administrative officer of the judiciary And where, he is the chairman of the Judicial Service Commi

Identify two firms with similar problems but from different countries. Conduct a comparative analysis of the firms.Analyze political, social, ethical, and legal differences facing

Liability: Liability under the section may arise on the death of a member if the death reduces the membership below the statutory minimum for the particular company and:

Question: You are the manager of a restaurant and receive a letter from a customer complaining about the quality of service and the rudeness of one member of your staff. You ha

Inflationary Bias Another potential problem with the coordination of monetary policy is that it can worsen the inflationary bias within each country. If the costs associated wi