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
According to the FASB, the usefulness of accounting is judged by which of the following two qualitative characteristics of accounting information? Comparability and neutrality Unde

Ask question #Minimum 10010 qestions words accepted#

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

On January 1, 2014, Offshore Corporation erected a drilling platform at a cost of $5,420,142. Offshore is legally required to dismantle and remove the platform at the end of its 6

Question 1 The following information should be used for questions #1 through #7: Jersies, Inc financial statement data.   2009 2010

Question: Lucy Kim is in the car hire business. The following information came from her Fixed Asset Register on 31 December 2009: On 31 March 2009, she sold the car wh

AsIDENTIFY THE MAIN PROVISIONS OF THE PARTNERSHIP ACT k question #Minimum 100 words accepted#

CONSOLIDATED INCOME STATEMENT AND CONSOLIDATED STATEMENT OF CHANGES IN EQUITY     The consolidated income statement follows similar principles as those of the consolidated balanc

The purchase of a car needs a $23,410 loan to be repaid in monthly installments for 4years at 12% annual real interest rate. If annual inflation rate is 4%, find the extra amount t

i want to make assignment