Disclaimer-liquidation of companies, Financial Accounting

Disclaimer

The liquidator may disclaim onerous property consisting of:

1.    Land burdened with onerous covenants;
2.    Stocks and shares;
3.    Unprofitable contracts, or
4.    Other property which is not saleable by reason of the liabilities attaching thereto;

and thereupon all the rights, interests and liabilities of the company in relation to the property are determined as from the date of disclaimer.

The liquidator may disclaim in writing at any time within twelve months after commencement of the winding up, or such extended period as the court may allow.

This right is lost if a person interested in the property applies in writing for him to decide whether he will disclaim or not; in this case the liquidator must give notice of disclaimer within 28 days of receiving the application, unless the court extends the time.

The court's consent is not required to the disclaimer except in the case of certain leases.

Any person interested in property disclaimed may apply to the court for an order vesting the property in himself.

Any person injured by the disclaimer may prove in the liquidation to the extent of his loss.

Posted Date: 12/13/2012 2:51:06 AM | Location : United States







Related Discussions:- Disclaimer-liquidation of companies, Assignment Help, Ask Question on Disclaimer-liquidation of companies, Get Answer, Expert's Help, Disclaimer-liquidation of companies Discussions

Write discussion on Disclaimer-liquidation of companies
Your posts are moderated
Related Questions
Received 10,000 contribution from bill london in exchange for common stock What 2 accounts are used

APPORTIONMENT (a) T he purpose of the apportionment rules The purpose of the various rules of apportionment is to provide a fair and reasonable basis for dividing certain

Illustration: Computation of retained profits acquisition Normal 0 false false false EN-US X-NONE X-NONE MicrosoftIn

Jane makes a living renting expensive state of the art surveillance equipment to detectives and nervous spouses. Her average rental period is 27 days. The rental price includes all

Ocean Atlantic Co. is a merchandising business. the account balances for Ocean Atlantic co. as of July 1, 2012 (unless otherwise indicated), are as follows: 110 Cash 63,600 1

The office building was bought in January 1, 2011 and was originally planned to be used for 40 years and had no salvage value. It is depreciated on a straight line basis. Now in

The three certainties A trust will be valid only if the three certainties are present i.e. certainty of words, certainty of subject, and certainty of objects.   1. Certainty

The Deficiency Account Purpose of deficiency account : The purpose of the deficiency account is to explain the deficit shown on the statement of affairs. The deficiency acc

Tampa Foundry began operations during the present year, manufacturing several products for industrial use. One such product is light-gauge aluminum, which the company sells for $36

Items reducing the deficit: Items reducing the deficit would include: (a)    Profits from trading; (b)    Estimated profit on the realisation of assets. Notes: (a) Whe