Proceedings for compulsory liquidation, Business Law and Ethics

Proceedings for Compulsory Liquidation:

When the petition is presented to the court a copy is delivered to the company in case it objects, and it is advertised so that other creditors may intervene if they wish.  At the hearing, a creditor whose debt is unpaid is likely to secure an order for compulsory liquidation (as his remedy of last resort) unless the company (paragraph 8) or opposing creditors (paragraph 9) persuade the court to dismiss the petition.                                     

  If the petition is presented by a member (contributory) he must show (in addition to suitable grounds for compulsory liquidation) that:

(a) the company is solvent or alternatively refuses to supply information of its financial position.  The court will not order compulsory liquidation on a member's petition if he has nothing to gain from it.  If the company is insolvent he would receive nothing since the creditors then take all the assets;

(b) he has been a registered shareholder for at least six of the 18 months up to the date of his petition.  But this rule is not applied if the petitioner acquired his shares by allotment direct from the company or by inheritance from a deceased member or if the petition is based on the number of members having fallen below two: CA s.221.

A personal representative of a deceased shareholder may petition but he must first obtain a grant of probate etc. to establish his authority to represent the estate: CA, s.216.  The trustee in bankruptcy of a bankrupt contributory may also petition on his behalf: CA, s.217.

Posted Date: 1/15/2013 4:52:47 AM | Location : United States

Related Discussions:- Proceedings for compulsory liquidation, Assignment Help, Ask Question on Proceedings for compulsory liquidation, Get Answer, Expert's Help, Proceedings for compulsory liquidation Discussions

Write discussion on Proceedings for compulsory liquidation
Your posts are moderated
Related Questions
Description of terrorism UNSC has successfully come up with laws to deal with terrorism and with the help of the theory of self determination, use of force and IHL, tried to re

/* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-prior

hello.. iahve one business law assignment can you please give me quote?

ASSETS IN THE POSSESSION OF CREDITORS:  If the creditor has seized assets in the course of executing a judgement for debt against the company and at the commencement of the wi

Question 1: (a) According to Archie Carroll what are the four interrelated aspects of corporate social responsibility? Use examples from the Mauritian context to illustrate you

QUESTION 1 In the exercise of its disciplinary power an employer can terminate an employee's contract. Should an employer decide not to terminate the contract of employment, wh

Mischief rule: "Four things are to be considered and discussed:; (i) First is 'what was the common law earlier than the making of the Act?' (ii) is 'what was the mischie

Elements of Estoppel Presentation crucially to be acted on reliance on the presentation and one is Change in the legal position as a product of the reliance and one is

What are the functions and powers of the Security Council? The functions and powers of the Security Council, which are as follows: • To keep international peace and security

State article 2 of International law Article 2 states that there is no right of a State under international law to diplomatic relations; these exist by mutual consent. However