Effect of resolution-liquidation of companies, Financial Accounting

Effect of Resolution

The consequences of the resolution to wind up are:

1) The company must cease to carry on its business except so far as is necessary for the beneficial winding up thereof s.274

2) The corporate state and powers of the company continue until it is dissolved s.274,

3) A transfer of shares without the liquidators's sanction and any alteration in the status of the members is void s.275,

4) There is no automatic stay of proceedings against the company, but the court has a discretion to do so on the application of the liquidator or a creditor or contributory s.301

5) Invoices, letters, etc, must state that the company is being wound up s.329

6) The directors' powers cease, unless their continuance is sanctioned by the liquidator or the company in the case of a members' voluntary winding-up, or the creditors or the committee of inspection in the case of a creditors' voluntary winding-up ss.278, 290,

7) The company's employees are automatically dismissed if the company is insolvent (Fowler v Commercial Timber Co.); otherwise probably not.

Posted Date: 12/13/2012 2:39:24 AM | Location : United States







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

Write discussion on Effect of resolution-liquidation of companies
Your posts are moderated
Related Questions
I am an AAT student studying lvl 3 AAT at college. I wish to learn how to complete self assessment end of year tax return forms for other people. That is because I have already bee

#question.DISCUSS THE APPLICABILITY OF AN OPERATING CYCLE IN POULTRY BUSINESS.

Q. Show the investment appraisal method? The investment appraisal method is concerned with assessing the value of future cash flows compared to the cost of investment. Since fu

You have previously been exposed to the 'Introduction and analysis' of financial statements in previous sections of this course. From now you might have acquired several familiarit


Time for disclaimer The trustee may disclaim in writing at any time within twelve months of his appointment, or of becoming aware of the property, or such extended period as th

Statement of Retained Earnings Landon Corporation was organized on January 2, 2010, with the investment of $100,000 by each of its two stockholders. Net income for its first year o

Valuing Callable Bonds: Bowdeen Manufacturing intends to issue callable, perpetual bonds with annual coupon payments. The bonds are callable at $1,350. One-year interest rates

An investor holds a bullish view for the equity market over the next twelve months and wishes to recalibrate his portfolio to reflect this view. The investor's portfolio consists o

No.         Account Title                                                                                     Debit                     Credit 101         Cash . . . . .