Distribution of surplus assets, Business Law and Ethics

Distribution of Surplus Assets:

If the debts are paid in full the liquidator should apply what remains in repayment of capital paid on shares and then distribute any residue to those entitled to the surplus.  Unless otherwise stated all shares rank equally.  But the articles often provide that preference share capital is to be repaid in priority (with the implication that preference shares do not carry a right to participate in any surplus left after all paid up share capital has been paid).

A company may (by its memorandum or articles or by a resolution passed in general meeting) authorize distribution of assets (after payment of debts which must have priority) not to members but to, for example, a charity or to employees of the company.  Payments to employees made after the company has ceased to carry on or has sold its business are not within its powers

Parke v. Daily News Ltd.

Posted Date: 1/15/2013 5:34:34 AM | Location : United States







Related Discussions:- Distribution of surplus assets, Assignment Help, Ask Question on Distribution of surplus assets, Get Answer, Expert's Help, Distribution of surplus assets Discussions

Write discussion on Distribution of surplus assets
Your posts are moderated
Related Questions
Creditors meeting - winding up: The creditors' meeting is convened for the same day at a later time than the members' meeting or it is held the following day.  One of the dire

Define the subordinate legislation briefly. Subordinate legislation: • Regulations: It directly applicable and self-executing, no require for member state to create own

Court of Appeal - Establishment and Composition Establishment Therefore the Court of Appeal was established on date 28th October in year 1977 through Section 64(1) of t

Equity -Non-Recognition of Trusts Therefore the common law did not recognize "trusts".  Like a case whether A conveyed property to B "on trust" for C the common law courts cou

Explain Territorial principle of criminal jurisdiction The territorial principle provides that the courts of the State where a crime is committed may exercise jurisdiction over

SECURED CREDITORS: A secured creditor may: (a) realize his security and prove as an unsecured creditor for the balance (if any) of his debt; (b)value the security and prov

Beneficial Service - Binding Contracts According to such, a contract relates service or apprenticeship is such binding on an infant - which mostly provided it is substantially

Capacity to Become a Partner - Partnership Law Competence to enter in partnership is co-extensive about capacity to contract.  Actually an infant may enter in a contract eithe

Special interest groups and policy decision Special Interest Groups, either of voters or the prospective contesters, play an important role in policy process, especially under

The MV unfortunate was talking passengers to Lyme Cay when it receive a distress signal from a vessel nearby the master started to proceed towards the vessel but stop when he reali