Condition for liquidation - winding up, Business Law and Ethics

Condition for liquidation:

The liquidation itself may render a charge over the company's assets void in any of the following circumstances:

(a)     the charge was not registered within 42 days of creation as required by s.96;

(b)     the charge is a floating charge created within the period of 12 months before commencement of liquidation (paragraph 24 below), or

(c)     the charge is void as a fraudulent preference (paragraph 28 below).

If the charge is void the receiver's powers and appointment lapse and he must account to the liquidator for his transactions and the assets of the company still under his control.

If there are not sufficient other assets to pay preferential debts those debts are paid out of property subject to a floating charge in priority to that charge.  It is the duty of the liquidator to ensure that debts are paid in their due order of priority.

Posted Date: 1/15/2013 5:23:49 AM | Location : United States







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

Write discussion on Condition for liquidation - winding up
Your posts are moderated
Related Questions
QUESTION 1 (a) What are usually accepted principles of corporate governance. (b) What factors can lead to incrising corruption in the business environment? QUESTION 2

One night Mr Kokintou and Ms Mangetou, entered into a housethrough a window which was negligently left open by the owner of the house.  Whilst Ms Mangetou was keeping guard at the

Accuracy of the managers certificate: Was it the duty of the auditors to test the accuracy of the manager's certificate by a comparison of the figures in the books, and were t

What forces the policy maker to obey the law When law directs a policy maker to carryout policy, what forces the policy maker to obey the law? When there is no restriction from

Defining phoenix activity in legislation Some stakeholders noted that defining phoenix activity in legislation could be beneficial if the definition was appropriate and it was

Prohibition:  Section 18 of the Registration of Business Names Act provides that the registration of a company's business name under the Act shall not be construed as authoris

Q. Show Recent developments in mitigating phoenix activity? Since these previous works, there have been significant developments in mitigating phoenix activity. Following Tr

ALLOTMENT OF SHARES: An allotment, legally, is the company's acceptance of an offer to buy its shares. Thus we can say it is governed by the following rules of the common law

a) Determine which forum(s) Purchaser could file her lawsuit in.   Personal Jurisdiction, b)  If Purchaser were to file in CA, could she formed specific jurisdiction over you

Multiparty system and coalition We have already made conceptual excursion gaining impressions of the existence of multiple parties. Now, in this section we shall observe that h