Compulsory winding up, Business Law and Ethics

Compulsory winding up:

At the hearing other creditors of the company may oppose the petition.  If so, the court is likely to decide in favour of those to whom the larger amount is owing.  But the court may also consider the reasons for the differences between the creditors:

                                      Case: RE SOUTHARD & CO. (1979)

A holding company arranged for its subsidiary, of which it was the largest creditor, to go into voluntary liquidation.  The holding company, as a creditor, later petitioned for the compulsory winding up of the subsidiary in order to oust the original liquidator.  The trade creditors, to whom the subsidiary owned smaller sums, wished the voluntary liquidation to continue.

Held:

The court might consider the reasons for the petition and the opposition to it and was not bound to accede to the wishes of the larger creditor.  The petition was dismissed.

Posted Date: 1/15/2013 4:44:00 AM | Location : United States







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

Write discussion on Compulsory winding up
Your posts are moderated
Related Questions
Question 1: Discuss what types of norms can be used to help judges in their interpretation of statutes. Question 2: Discuss the concepts of originalism and dynamism in

QUESTION 1 Write in detail on the following (a) Agency shop orders and (b) Decrease from the remuneration of a worker for the employer's benefit QUESTION 2 An indust

Define the Strategic Voting and Policy Process Now we take up an important issue with respect to policy process. In standard models, where a single vote is taken directly as re

Choice Of Method: There are three statutory methods to be considered:          Where one company offers to acquire the shares of another company and its offer is accepted b

I have a contract for employment, its is for a CTO position, giving me equity stake in the company, I do not agree with the offer and I have a counter offer, I need a experts opini

Distribution of Surplus Assets: If the debts are paid in full the liquidator should apply what remains in repayment of capital paid on shares and then distribute any residue t

Following are different time zones in which the issue of Jammu & Kashmir could be divided: 1. 1947: when the dispute came up 2. 1948-1957: when the matter goes to UN, the su

Civil Case - African Customary Law Moreover customary law is applicable only in civil cases.  Thus the District Magistrate's Court's Act 1967, S.2 restricts the civil case

Arbitration However this is a dispute resolution mechanism whereas disputes are settled out of the court through arbitral tribunals or arbitrators that who make arbitral words

Necessity - Law of Agency and Partnership Therefore an agency of necessity may subsist either domestic or commercial: Commercial Agency of Necessity: Although