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

The government of a country has just issued a series of zero-coupon bonds maturing at the end of years 1, 2, 3 and 4. Suppose the spot rates (or continuously compounded yields per

Q. What is Asset? Asset - An economic resource which is expected to be of benefit in the future. Probable futureeconomic benefits attained as a result of past transactions or e

On May 1, 2010, Ziek Corp. declared and issued a 10% common stock dividend. Prior to this dividend, Ziek had 100,000 shares of $1 par value common stock issued and outstanding. The

Question: Mosman Ltd produces a single product. The projected sales for the first month of the coming year and the beginning and ending inventory data are as follows:

Olivia has received a $15 gift certificate that is redeemable only for roasted peanuts. Bags of roasted peanuts come in two sizes, regular and jumbo. A regular bag contains 30 pean

#questionBroadway Scripts is a service-type enterprise in the entertainment field, and its manager, Joe Numbers, has only a limited knowledge of accounting. Joe prepared the follo

US GAAP follows the Historical Cost Concept in valuing the cost of Long-Term Assets. Explain this principle and how it compares to the standards used in the reporting of Long-Term

PVA ∞ = A(1 + k) -1 +  A(1 + k) -2 +..... + A(1 + k ) ∞ + 1 + A (1 + k) ∞ Multiplying both the sides of Eq (a7) by (1+k) provides: PVA ∞  = (1 +k) = A(1 +k) +A (1 +k)

list and explain the stages where the errors are deducted for rectification.