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
Question: Agatha Co. is a trading company making up its accounts regularly to 31 December each year. At 01 January 2005 the following balances existed in the records of Agat

I would like you to take the second set of data from session 8 (the one you worked with in the first participation exercise) and do the following: 1.  Determine the number of gr

Protected transactions These fall into three categories: (A) Under Section 50: Payments by the bankrupt to creditors; Payments or deliveries to the bankrupt; C

Q. What are Junk Bonds? Junk Bonds - DEBT SECURITIES issued by companies with higher than normal credit risk. Considered ‘non-investment grade' bonds, these SECURITIES ordinari

Statement of surplus capital v\:* {behavior:url(#default#VML);} o\:* {behavior:url(#default#VML);} w\:* {behavior:url(#default#VML);} .shape {behavior:url(#default#VML

1.  The average annual investment cost of a workstation in New Jersey has been calculated to be $100,000.  It has been calculated to be $150,000 in Kentucky.  The hourly cost at a

Combined income statement The figures to appear in the combined income statement are based on the following diagram: 1) An arrow pointing into a box refers to purchase

How Accounting objectives can be achieved There are two main ways by which this can be achieved: All the accounting records are maintained at the head office; or Each

Baseball Products manufactures a single product with the following full unit costs at a volume of 2,000 units: Direct materials $ 900 Direct labor 360 Manufacturing overhead* 6

Richard Company had 102,000 shares of $5 par value common stock issued and outstanding before repurchasing 10,200 shares for $76,500. Richard had received $2,040,000 cash from shar