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
Q. Problems and difficulties associated with forecasting? We have relied to a great degree on the forecasting of data in order to provide an evaluation of the proposal. Not the

Harry purchased equipment for his business and gave the seller cash and a note due in two years. Larry also purchased business equipment, but financed the transaction with a bank l

Question Capital Expenditure Decisions and Investment Criteria Bodmin plc Bodmin plc is a highly profitable electronics company that manufactures a range of innovative produ

objective of working capital management and profitability

a. Explain a major factor which led to the introduction of International Financial Reporting Standards (IFRS). b. Explain how users of financial information benefit from IFRS.

Introduction to Pension funds Pension funds are normally set up to provide pension benefits to employees who have retired. The pension funds receive contributions mainly from e

a) A company has 7000 obsolete toys carried in inventory at a manufacturing cost of $6 per unit. If the toys are reworked for $2 per unit, they could be sold for $3 per unit. If th

1. Kinetics is considering a project that has a NINV of $874,000 and generates net cash flows of $170,000 per year for 12 years. What is the NPV of this project if Kinetics' cost o

Adjusting Entries Clapton Guitar Company entered into the following transactions during 2013. [The transactions were properly recorded in permanent (balance sheet) accounts unless