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
You will gain welfare from consuming bread and chocolate. Your welfare is described numerically by W = 4B + 2C, where B denotes the quantity of bread you choose to consume, and C d

Acquisition of Assets: The cost method of accounting is used for the initial recording of all acquisitions of assets controlled by the authority. Cost is determined as the fair val

Regulated Investment Company (RIC) - Commonly known as a MUTUAL FUND, this is a domestic corporation which acts as an investment agent for its shareholders by typically investing i

On December 31, 2010, the stockholders' equity section of Arndt, Inc., was as follows: Common stock, par value $10; authorized 30,000 shares; issued and outstanding 9,000 shares $

Carla, Linda, and Terry form a partnership. Carla contributes machinery (that was purchased in 2006 and has an adjusted basis of $45,000 and a fair market value of $70,000) in retu

Q. What is Inheritance in Gross income? Inheritance - As distinguished from a BEQUEST or devise, an inheritance is property attained through laws of descent and distribution fr

Ask qCamp Corp had the following balances in its stockholders'''' equity at jan 1: Common stock, $2, par value, 450,000 shares issued $900,000 Additional pd in capial 1,200,000 Ret

Comparison with Sector Averages Any conclusion relating to the signs of overtrading needs to be put in the context of the normal values of accounting ratios indicated by the se

how we write a literature review

This is a research case.  You must complete this assignment INDIVIDUALLY.  This means no help from other students.  You may consult Dr. Eldridge while you are working on this case.