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
ASSETS IN THE POSSESSION OF CREDITORS:  If the creditor has seized assets in the course of executing a judgement for debt against the company and at the commencement of the wi

Legal Procedures: The court may order the examination in private or public (ie. open court) of an officer of a company in liquidation or of any person known or suspected to ha

Requirements of Registration of Hire Purchase Agreements Each Hire purchase Agreement must will in the English language It have be delivered to registration with

Explain the modes of  acquiring territory There are certain modes of  acquiring territory. Before 1948, there were a  lot  of  territories available and mostly areas were unkno

WHAT WAS THE IMMUNITY FROM JURISDICTION   States are recognized as having authority over people, things and events within their own territory and therefore may exercise jurisdict

Judicial elucidation of Acts: In fact the other points to be noted in relation to judicial elucidation of Acts are as follows: like; (a)   There is no clause of an Act is t

What are the advantages of delegated legislation? Advantages of delegated legislation: a. Permits Parliament time to concentrate onto other legislation. b. This is fas

Change of Business Name:  Section 17(4) of the Registration of Business Names Act provides that if - (a)     any company is, through inadvertence or otherwise, registered un

Describe the Social conditions of multiple streams Social conditions that are not defined as problems, and for which alternatives are never proposed, never become policy issues

CASE LAW:    The aforesaid statutory provisions for the protection of minorities have been supplemented by judicial intervention in a variety of cases which are generally expl