Differences members and creditors voluntary wind up, Business Law and Ethics

Differences members and creditors voluntary wind up:

main differences between a members' and a creditors' voluntary winding up are that:

(a) in a creditors' voluntary winding up the liquidator, although responsible to members as well as creditors, is selected by the creditors.  In a members' voluntary winding up he is appointed by the members;

(b) in a creditors' voluntary winding up the liquidator must obtain the approval (usually) of the committee of inspection for the exercise of certain statutory powers.  In a members' voluntary winding up he obtains approval from the members in general meeting;

(c) there is a committee of inspection in a creditors' voluntary winding up with up to five members, a majority of whom being appointed by the creditors: s.288(1).  There is no committee in a members' voluntary winding up.

The effect is that the creditors have a decisive influence on the conduct of the liquidation.  This is reasonable since it is assumed (in the absence of a statutory declaration of solvency) that the company is unable to pay its debts in full.  The remaining assets will therefore be realized for the benefit of the creditors and the members get nothing (unless the company proves to be solvent after all).

Meetings are held in the same sequence as in a members' voluntary winding up but the meetings of creditors are called at the same intervals as the meetings of members and for similar purposes.

Posted Date: 1/15/2013 5:06:19 AM | Location : United States







Related Discussions:- Differences members and creditors voluntary wind up, Assignment Help, Ask Question on Differences members and creditors voluntary wind up, Get Answer, Expert's Help, Differences members and creditors voluntary wind up Discussions

Write discussion on Differences members and creditors voluntary wind up
Your posts are moderated
Related Questions
Common law rules: The above common law rules have been modified by the following statutory provisions:  VOID ALLOTMENTS a) S.50 A renders an allotment void if it was mad


Managing Director: In Ellis v Bailey and Company (East Africa) Limited (76) it was stated that "without specific authority in the articles directors may not appoint one of the

EXPLAIN THE KNGSTON COTTON MILL CASE

Mr. D is a professional basketball player who orders some shoes through the mail. The mail order house promises all customers delivery within 30 days of receiving the order. Mr. D'

Limited Partnerships Through virtue of the Limited Partnerships Act, such the liability of certain partners that may be limited to a certain extent. Further the chief provisions

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

Corporation Aggregate - Types of Corporations However this is a legal entity formed through at least two people and whose membership at any one time legally concludes of a

Theobald: Conversely there such I take to be the duty of the auditor; then he must be honest.... i.e. like he must not certify that what he does not believe to be true, reason

Country Strategy in harmonising national It is proposed that the OMC should enhance the role of such Country Strategy in harmonising national and EC aid programmes. The OMC wi