Effect of winding up order-liquidation of companies, Financial Accounting

Effect of Winding-up Order

The consequences of a winding-up order are:

1) Any disposition of the company's property and any transfer of shares is void, unless the court otherwise orders s.224: this provision "relates back" to the commencement of the winding up, i.e., the date of presentation of the petition, or, if the company has previously passed a resolution to wind up voluntarily, the date of that resolution s.226,

2) Any attachment, execution or distress against the property of the company after the commencement of the winding up is void s.225,

3) No legal proceedings may be begun or continued against the company without leave of the court s.228,

4) The O.R. becomes provisional liquidator (contrast provisional liquidator in note e above) until a liquidator is appointed s.236, and may apply to the court for the appointment of a special manager to carry on business of the company pending the appointment of a liquidator s.258,

5) Every invoice, order or business letter on which the company's name appears must state that the company is being wound up s.329,

6) The company's employees are automatically dismissed, and the director's powers are terminated.

Posted Date: 12/13/2012 2:20:15 AM | Location : United States







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

Write discussion on Effect of winding up order-liquidation of companies
Your posts are moderated
Related Questions
VED Analysis: VED i.e. Vital, Essential and Desirable analysis is a technique employed for spare part inventory analysis and is broadly used in the automobile industry particul

This assessment item may be completed either individually or in groups of two (2) students.  The group mark on both assessment items will be given to both students.  Please ensure

Problem: (a) Many businesses find it useful to maintain a control account in respect of both their trade receivables and trade payables. Describe why such control accounts ar

ABC Corportation purchased $15,000 of office furniture by putting down $7000 soqn in cash and the rest on accout

A____ is a loss to the business and a gain to the debtor

Zoum Corporation had the following transactions during 2014: 1. Issued $125,000 of par value common stock for cash. 2. Recorded and paid wages expense of $60,000. 3. Acquired land

Explain the mechanism that states use to prevent the double taxation of the income of a corporation doing business in two or more states.

Receiver appointed by court If appointed by the court, the receiver must give security as directed by the court. The following notification must be given: (a) The debenture h

Receiver necessary statement The receiver may, if necessary, require the statement to be submitted by: Past or present officers of the company Persons who have taken

In January 2011, Rogers Co. purchased a machine that cost $85,000. The equipment is estimated to have a 5-year life and a salvage value of $15,000. a) Compute the amount of depr