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
QUESTION (a) What is a contract and what are the elements of a valid and enforceable contract according to English Law? (b) List down 5 main documents which form part of a b

Legal Status:  A promoter is not an agent of the company he promotes.  However, the English courts have held that he stands in a fiduciary relationship to the company he promo

Issuing shares at a discount: In Ooregum Gold Mining Co of India Ltd v Roper (45) the House of Lords held that it is illegal for a limited company to issue its shares at a dis

Criminal Law: However criminal law has been defined as the law of crimes.  So a crime has been defined just like an act or omission or committed, omitted in violation of publi

Q. Suggested actions for addressing phoenix activity? The following actions are suggested for addressing phoenix activity. Those that have been suggested are the actions that:

WHAT ARE MITIGATING FACTORS OF A CONTRACT

I have a contract for employment, its is for a CTO position, giving me equity stake in the company, I do not agree with the offer and I have a counter offer, I need a experts opini

Involuntary Restraints - Law of Contract Although these are restraints imposed by professional bodies and trade associations at their members to certain purposes as e.g. enhan

Explain the modes of  acquiring territory There are certain modes of  acquiring territory. Before 1948, there were a  lot  of  territories available and mostly areas were unkno

Question 1: Describe the types of pallets that exist, and suggest the one that is more suitable to an organization that has a high variety of low-value items, which high stock