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
State the issues relating to the public policy We shall focus on the issues relating to the public policy in an open economy setting in a bit more technical way. While approac

QUESTION 1 (a) What are the essential elements for a valid contract as stipulated by article 1108 of the Civil Code (CCM)? (b) How can consent be vitiated in relation to con

Rights of Guarantor Against the Debtor Therefore the guarantor's rights alongside the debtor are: like; (a) Before the payment has been made, whereas to compel the debtor t

Who would think a documentary about the collapse of a mammoth corporation could play out like a drama with the emotional power of Greek tragedy? But that is the impact of enroll:th

QUESTION 1 Enumerate and comment upon the number and nature of the grounds on the basis of which a citizen may challenge the decision of a public body. Illustrate your answer w

Question1 Describe the term banking and what are the permitted businesses for a banking company as per BR Act 1949 Question2 When is a negotiable instrument considered as

Explain the Cotton Arbitration Arbitration is a more formal process than mediation and conciliation. Arbitration can take place between two states or individuals of two states

General rules on statute-barred debts: A statute-barred debt should be rejected since it is not legally enforceable.  But in a members' voluntary winding up the liquidator may

"The liability of third party neutrals has been a topic of concern ever since the formalisation of dispute resolution in Australia.  Although there are no known cases in Australia

Liquidators and Receivers: The distinction between liquidators and receivers must be kept clear: (a) a receiver is a representative of secured creditors appointed by them (