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
OCF 218200 will result in a zero net present value for the project. The FC 329000 and CM 216.4 per unit. Financial break even?

A net loss resluts in a decrease in: a. Revenues b. Expenses c. Stockholder's Equity d. Liabilities

Requirements: Part I Access the IFRS and the Generally Accepted Accounting Principles (GAAP) of your country. a. Note ten differences between the two sets of GAAP. Part II Ac

Which of the following is NOT an example of an agency cost? A. Paying an accounting firm to audit your financial statements. B. Paying an insurance company to assure that b

Important points for holding company with subsidiary The following points are important: 1) The first approach is to determine the effective shareholding by the holding compan


Bell Mountain Vineyards is considering updating its current manual accounting system with a high-end electronic system. While the new accounting system would save the company mon

POWERS OF INVESTMENT The trustees have a duty to obtain control of trust assets and to invest trust funds in authorised securities.   The trustees may invest in such securities

Vincent Ltd operates solely in Western Australia and the chief operating decision maker has identified five operating segments: Mining, Insurance, Retailing, Manufacturing and Tran

I want to do a custom dissertation on IAS 40 investment property which needs to include a brief outline, positive as well as negative international critique with respect to the sta