Compulsory liquidation - winding up, Business Law and Ethics

Compulsory liquidation - winding up:

There are a number of points of similarity:

(a) in a compulsory (but not a voluntary) liquidation the directors have to submit a statement of affairs to the Official Receiver as provisional liquidator. If a receiver is appointed under a floating charge covering the company's undertaking as a whole he too is entitled to be given a statement of affairs.

(b) accountants who specialize in insolvency may be appointed as liquidators or as receivers (sometimes they combine these positions in the same company but professional opinion in the U.K. has hardened against this position since there can be difficult conflicts of interest to resolve between unsecured creditors and members on one side and secured creditors on the other);

(c) a receiver appointed under a floating charge is also manager of the business (or a manager is appointed to assist him). His function is to continue to carry on the business on a going concern basis. The liquidator's function is to sell the company's assets on the best terms he can get. As closure costs (redundancy payments to employees etc.) can be heavy a liquidator may decide to carry on the business with a view to selling it as a going concern. But this is only one of the alternatives open to him;

(d) neither liquidator nor receiver usually has the assets of the business vested in his legal ownership (though a liquidator may obtain a court order for assets to be vested in him under CA, s.240 - but this is not common). Both liquidator and receiver have control of the company's assets.

Posted Date: 1/15/2013 5:59:15 AM | Location : United States







Related Discussions:- Compulsory liquidation - winding up, Assignment Help, Ask Question on Compulsory liquidation - winding up, Get Answer, Expert's Help, Compulsory liquidation - winding up Discussions

Write discussion on Compulsory liquidation - winding up
Your posts are moderated
Related Questions
Appropriate method adopted is to make new laws The more appropriate method adopted is to make new laws in compliance with the international laws because it would not only help

Common law rule - meetings and resolutions: The common law rule applies irrespective of whether the failure to give notice of the meeting was deliberate or unintentional.  How

Fraudulent Trading: Section 323 provides that if, in the course of the  winding up of a company, it appears that any business of the company has been carried on with intent to

Define the term - Credibility and Reputation Nature and characteristic of the environment in which a policy has been chosen has a number of important implications. As we have a

Gains from Policy Coordination The previous section has illustrated how large countries typically face positive or negative spill over effects associated with aggregate demand

OPPRESSION OF  MINORITIES:                    7.3.1 Section 211 of the Act provides that any member of a company who complains that the affairs of the company are being conduc

Qualified Acceptance It might be as the drawee is prepared for accept the bill since only subject to some adjustment. Any type of acceptance which varies the effect of such a bi

Subject-Matter of the Contract Through S.7(1) the goods such form the subject-matter of a contract of sale may exist either  possessed  or existing goods may like owned by the

Ostensible Authority - Authority of Partners A difference is something drawn among the genuine and ostensible authority about a partner. Whether it is actual or express author

Question 1: The Bill of Lading possesses the key features of an efficient transport document. Discuss. Question 2: A CIF sale is not a sale of goods but a Sale of Do