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
Suppose your employer wanted to include a restraint of trade clause in your employment agreement. Prepare and set out an instance of this clause that would be applicable to you in

Question 1: (a) Describe any five topics in employee relations from the following: Employee Engagement, Workplace Investigations, Employee Satisfaction, Performance Management,

Illustrate the Maintenance Phase of policy process a) Develop a plan for active maintenance and review Who will ensure that policies are actively maintained and reviewed? H

Interpersonal Relationships Entrepreneurs are more concerned with people's accomplishments than with their feelings. They generally avoid becoming personally involved and

Question 1 - Hatfield owned a large farm on which he grew grain. His combine was inadequate in relation to the acreage of grain that he harvested annually. As a result, on seve

LAW OF TREATIES Treaties are an important and major source of international law. It is a convenient way by which the States deliberately  enter into agreements with other State

Evolution of Contracting  Contracts have evolved over centuries. It is a lawful binding relation between two or more parties. The contractual relationships can occur - from a s

State Article 10 of air and outer space law Article 10 allows the aircraft to cross the territory of a contracting State without landing, and further states that every aircraft

Function of the Registered Office:                          Section 107(1) provides that a company shall, as from the day on which it begins to carry on business or as from th

QUESTION 1 Enumerate and comment upon the number and nature of the grounds on the basis of which a citizen may challenge the decision of a public body. Illustrate your answer w