Persons who may petition-liquidation of companies, Financial Accounting

Persons Who May Petition

A petition may be presented by any of the following:

A Creditor:

A creditor may petition if his debt exceeds Shs 1,000 and is undisputed. The order is made as of right, unless the majority of creditors oppose it, in which case it is for the majority to justify their opposition unless the company is already in voluntary liquidation (re J. D. Swain Ltd).

"Creditor" includes a contingent or prospective creditor (if he gives security for costs: s.221), a debenture holder, and an assignee of a debt.

A  Contributory:

A contributory is a person liable to contribute to the assets of the company in the event of winding up s.213: this includes all present members (even though their shares are fully paid) and past members who ceased to be members during the year preceding the winding up and the personal representative of a deceased member - but not the trustee in a member's bankruptcy or the holders of share warrants.

A contributory can only petition if:

a. The number of members has fallen below the statutory minimum; or
b.  His shares:

     i.    Were originally alloted to him, or
    ii.    Have been held by him in his own name for at least six of the preceding 18 months, or
   iii.    Have devolved on him through the death of a former holder s.221.

c. There will be assets for distribution among the members: if the company is insolvent a contributory has no tangible interest in the winding up (Re Rica Gold Washing Co.)

The Official Receiver:

The Office Receiver may petition if the company is already being wound up voluntarily or under supervision and the liquidation cannot proceed with due regard to the interests of the creditors or contributories, e.g., because of the liquidator's misconduct s.221 (2).

The Company:

The company may petition in consequence of a special resolution passed for this purpose.

The Attorney General

The A.G. may petition if it appears from an inspector's report that it is expedient in the public interest that the company concerned should be wound up (P.D.A. 1963, s.16; C.A. 1967, s.81).

Posted Date: 12/13/2012 2:17:21 AM | Location : United States

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