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
KAM Computer Timeshare Company entered into the following transactions durnig May 2014 Decribe the effects of each transaction on assets, liabilities, and owner's equity. 1. Purcha

DELEGATION A trustee cannot deleget unless: 1.    It is necessary or in the ordinary course of administration; or 2.    Authorised by the trust instrument; or 3.    Authorise

what organizations are responsible for governing financial reporting? what is the role of each organiztion? how have the roles changed in the last 20 years? how might their roles c

Igor and Angela were married in 2005, separated in 2011, and divorced recently. At the time of marriage, each had some investments and personal assets. They both worked during the

3:Barnes Baskets, Inc. (BB) currently has zero debt. Its earnings before interest and taxes (EBIT) are $100,000, and it is a zero growth company. BB's current cost of equity is

Pro-forma accounts under Trustee Act v\:* {behavior:url(#default#VML);} o\:* {behavior:url(#default#VML);} w\:* {behavior:url(#default#VML);} .shape {behavior:url(#def

For each of the ratios listed below, indicate by the appropriate code letter, whether itis a liquidity ratio, a profitability ratio, or a solvency ratio. Code: L=Liquidity rati

Allie forms Broadbill Corporation by transferring land (basis of $125,000, fair market value of $775,000), which is subject to a mortgage of $375,000. One month prior to incorporat


1. Ben lost his job when his employer moved its plant. During the year, he collected unemployment benefits for three months, a total of $1,800. While he was waiting to hear from pr