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
what is the treatment of increase in allowance receivable.

First's current stock price is $260. The price may rise to $300 or fall to $170 in one month. The risk-free interest rate is 18% per year. a. Using the replication portfolio app

Assume that you are the president of Gaslight company. At the end of the year (December 31, 2011 of operation.

Didde Co. had 300,000 shares of common stock issued and outstanding at December 31, 2010. No common stock was issued during 2011. On January 1, 2011, Didde issued 200,000 shares of

1.what are the various fields of accounting and how do they differ? 2. how are revenues and expenses affect the owners' equity account? 3. why are revenues and expenses recor

On January 1, 2012, Osborn Company sold 12% bonds having a maturity value of $800,000 for $860,651.79, which provides the bondholders with a 10% yield. The bonds are dated January

Table on subsequent page lists 21 ratios being calculated by the Bombay Stock Exchange. Tick the board class to that each of the 21 ratios belongs to the blank columns of the Table

Revocation, alteration and revival of a will 1. A will may be revoked or altered by the maker of it at any time when he is competent to dispose of his free property by will.  (

Q. Principles of banking and finance? An introduction to the principles of banking and finance. It covers a broad variety of topics using an economic perspective and aims to gi

Real Estate Mortgage Investment Conduit (REMIC) - An entity which holds a fixed pool of mortgages and issues multiple classes of interest in itself to investors. A qualified REMIC