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

Holder in Due Course - Transferor's Title Section number 29 of the Act defines like "a holder in unpaid course" such like "a holder who that has taken a bill, so then complete a

Arbitration However this is a dispute resolution mechanism whereas disputes are settled out of the court through arbitral tribunals or arbitrators that who make arbitral words

Necessaries - Binding Contracts Definition of 'Necessaries' cleared by S. 4(2) to the Sale of Goods Act like "goods appropriate for the condition in life of that infant or min

how do i answer a problem question in law about the law of contract

Order for compulsory liquidation: The Official Receiver also calls separate meetings of creditors and of contributories within one month of the order for liquidation: s.236.

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 reg

Promotion: A company comes into existence from the moment of its registration by the registrar of companies. However, the  registration is preceded by what is called "promotio

List of Members: S.130(6) provides that the directors shall cause a list showing the names and postal addresses of the members of the company, and the number of shares held th

Principle of statutory provisions: Most of the cases in which the principle has actually been applied appear to fall within one of the following two classes:- 1. Where the