Grounds for compulsory winding up-liquidation of companies, Financial Accounting

Grounds for compulsory winding up

A company may be wound up by the court under s.219 if:

1) The company so resolves by special resolution,

2) Default is made in delivering the statutory report or holding the statutory meeting: a petition can be presented by members only at least 14 days after the last available date for the meeting s.221: the court may order the report to be delivered or the meeting held instead of making a winding-up order s.222,

3) The company has not commenced business within a year of incorporation or has suspended business for a whole year (and has no intention of carrying on or resuming business: (Middlesbrough Assembly Rooms Co.)

4) The number of members fall below seven, or two if a private company

5) Company is unable to pay its debts: this is deemed to be so if -

  • A creditor for more than Shs 1,000 has served a written demand for payment on the company, and payment has not been made within three weeks; or
  • Execution or other process on a judgement remains wholly or partly unsatisfied; or
  • It is otherwise proved to the satisfaction of the court that the company cannot pay its debts, taking into account its contingent and prospective liabilities s.220.
  • The court is of opinion that it is just and equitable for the company to be wound up, e.g., substratum gone, (re German Date Coffee Co), deadlock in management (re Yenidje Tobacco Co Ltd), company a "bubble" or formed for a fraudulent or illegal purpose mismanagement or misapplication of funds by directors of a private company (Loch v John Blackwood Ltd). The petitioner may rely on any circumstance of justice or equity which affects him, in a capacity, in his relations with the company or with the other shareholders (Ebrahimi v Westbourne Galleries 1972).


Posted Date: 12/13/2012 2:13:54 AM | Location : United States

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

Write discussion on Grounds for compulsory winding up-liquidation of companies
Your posts are moderated
Related Questions
sale of 430 to ramdas were credited in his account 340

THE BALANCE SHEET It shows the financial position of the company as at the end of a given financial period. The standard requires that assets and liabilities should be classifi

You have the following information about rates in London for Eurocurrency loans of one-year duration, the exchange rate between the USD and euros, the currency in which you want fi

The book of Deven Verma could not be tallied. The accountant transferred the difference of Rs. 1,270 in the suspense account on the debit side. The following mistakes were found la

petra corporation purchased P4,000 worth of merchandise on account terms 2/10, n?30, FOB shipping point. Prepaid transportation charges of P200 were added to the invoice.

Fiscal Policy In a democracy, elected officials of the government create programs for the general welfare of the population. To pay for these programs, the government taxes in

Determine the Various forms of business organizations There are various forms of business organizations: o Business-organization's objective is to earn a profit o Sole Pr

RECEIVERSHIPS: APPOINTMENT OF RECEIVER If a company defaults in payment of principal or interest, or otherwise defaults in observing the conditions contained in debentures issu

The matching rule is applied a. because it is required by the Internal revenue Code b. by expensing certain items immediately and in their entirety c. to help make the bookkeeper's