Effect of voluntary winding up, Business Law and Ethics

Effect of Voluntary Winding Up:

The main difference in legal consequences between a compulsory and voluntary winding up are:

(a) A voluntary winding up commences on the day when the resolution to wind up is passed.  It is not retrospective;

(b) The Official Receiver does not become provisional liquidator.  The members or creditors select and appoint the liquidator and he is not an officer of the court;

(c) There is no automatic stay of legal proceedings against the company nor are previous dispositions or seizure of its assets void.  But the liquidator in a voluntary winding up has a general right to apply to the court to make any order which the court can make in a compulsory liquidation.  He would do so to prevent any creditor obtaining an unfair advantage over other creditors;

(d) The liquidator replaces the directors in the management of the company (unless he decides to retain them).  The employees are not automatically dismissed by commencement of voluntary liquidation.  But insolvent liquidation may amount to repudiation of their contracts of employment (and provisions of the statutory employment protection code apply).

Posted Date: 1/15/2013 5:08:15 AM | Location : United States







Related Discussions:- Effect of voluntary winding up, Assignment Help, Ask Question on Effect of voluntary winding up, Get Answer, Expert's Help, Effect of voluntary winding up Discussions

Write discussion on Effect of voluntary winding up
Your posts are moderated
Related Questions
Determine the expansionary monetary policy The possible spillover effects associated with expansionary monetary policy. In particular with fixed exchange rates expansionary mon

Explain Constituent instruments Constituent instruments of international organizations, in which a treaty becomes a statute of an international organization, for example, Inter

Types of Authority - Agency Law Further there are three types of authority namely like:; (a) Real or factual However this is the authority that in fact is given to the

Question 1: i) What are the main characteristics of good faith bargaining? ii) What are the main criteria used in the US labour relations system to test good faith bargain

Registration Procedures: The procedures to be followed by persons who intend to form a registered company will depend on whether the proposed company is to be a public company

Statutory safeguard - Non-accepting shareholders: The non-accepting shareholders have a further statutory safeguard.  Company A is not obliged to serve notice of intention to

Estoppel - Law of Agency and Partnership Further the basis of estoppel was explained through the court like Spiro v. Lintern  in giving such; "Where a man is below a duty -

Determine the levels of Policy perspective Policy perspective, analysis can be made on three levels, state-system level, the nation-state level and the decision making level. T

Select an existing business that utilizes short, medium, and long-term strategic planning. You may also use your own company. Consider how the organization's operational-level plan

As you have already learned during your tenure at Midwest Valueland (MV) and from exposure to business news, it is not unusual for leaders and managers to encounter ethical situati