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 1: (A) What are the functions of the Employment Relations Tribunal established under the Employment Relations Act 2008? (B) What are the functions of the Commissi

A) As members of the WTO, recognize three (3) shared interests Japan, the EU, the USA and China all share.   B) A court only requires to have personal jurisdiction over a par

Transfer of Immovable Property By S.54 Property Act, 1882 as Note: This Act is applicable in the US requires that a transfer of immovable property worth over as 100 rupees mus

Directors Report: By S.157 (1) the balance sheet must have attached to it a directors' report on the company's affairs, including the amount, if any, which they recommend shou

Significance of Registration:           S.389 provides that "no company or association or may partnership consisting of more than twenty persons shall be formed... except it i

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

Appeals - Court-Martial In fact in Section 115 of the Armed Forces Act including a person who has been convicted through a court-martial to appeal to the High Court either aga

Powers and Duties:  The powers and duties of the secretary depend on the size and nature of the company and the personal contractual arrangements that it makes with him. Howev

Disadvantages of Stare Decisis Over-subtlety or Artificiality However a judge is forced, but it were follow an earlier case that, his conscience may preclude him from

Mr Zamora was apparently worried.  Not everything was going his way.  It was already 6.00 p.m. and his car had broken down.  He had to travel to the Mexico City airport to leave fo