Realisation of assets-liquidation of companies, Financial Accounting

Realisation of assets

1. Divisible property:

The ownership of the company's property does not vest in the liquidator (unless the court makes a vesting order: s.240); but he must take it under his control and apply it in satisfaction of the debts, and distribute any surplus among the members according to their respective rights and interests ss.239,296. The property available for this purpose is:

  • All the property of the company at the commencement of winding up.
  • Property seized in execution of a judgement which was not completed by that  date
  • Property used to give a fraudulent preference to creditors s313.  Any transaction made by a company which cannot meet its debts as they fall due with a view to preferring one creditor to another, within 6 months of the commencement of the winding up, is void.

 

2. Recovery of property:

The following steps may be taken to recover the company's property:

  • A private examination many be held by the court of any person thought capable of giving information as to the company's property or affairs s.263
  • Public examination of a promoter or officer may be held on a further report by the Official Receiver s.265: (see paragraph g,3 above)
  • If it appears that the company has carried on business with intent to defraud creditors or for any fraudulent purpose, the court many order any person who were knowingly parties to the fraud to be personally liable without any limitation of liability for such debts of the company as the court may direct s.323.
  • Misfeasance proceedings may be brought against any promoter, officer, manager or liquidator for the recovery of money or property or the contribution of a just sum to the company's assets s.324.
Posted Date: 12/13/2012 2:50:14 AM | Location : United States







Related Discussions:- Realisation of assets-liquidation of companies, Assignment Help, Ask Question on Realisation of assets-liquidation of companies, Get Answer, Expert's Help, Realisation of assets-liquidation of companies Discussions

Write discussion on Realisation of assets-liquidation of companies
Your posts are moderated
Related Questions
Assume that prices and wages adjust rapidly so that the markets for labor, goods, and assets are always in equilibrium. What are the effects of each of the following on real money


Interest Rate on a one Payment Your parents will retire in 17 years. They presently have $270,000, and they think they will require $1 million at retirement. What annual intere

Terms of Trade Doe Ltd must negotiate agreed terms of trade with its customers in order to encourage prompter payment. These terms of trade may tender discounts for early paymen

Calculat capital expenditure, How to define Capital expenditure This is kind of expenditure on fixed assets like as plant or equipment, the cost of which is spread over several

The non current asset section of Aadil & Co. at December 31, 2005 is as under:- Land Rs. 1,000,000 Office equipment Rs. 5,000,000 Less: accumulated depreciation 250,000 4,75

The Federal Government The Federal Government is the single largest influence on the U.S. economy. There are two main areas in which the government can impact the economy: fi

What do you mean by base case NPV?

scope of financial accounting

Balance Sheet Preparation with a Missing Element The following data are available for Schubert Products Inc. as of December 31, 2012. Cash . . . . . . . . . . . . . . . . . . . . .