Statutory power - mergers and winding up, Business Law and Ethics

Statutory power - mergers and winding up:

It is usual to proceed under s.207 as there are technical difficulties over s.300 procedure.  The liquidator's powers to reach a compromise with creditors are restricted to cases where all creditors (of the same class) are treated alike, e.g. a uniform payment of Shs.15 in 1 pound to be accepted in full settlement.  But if their rights are to be varied a scheme of arrangement is required, i.e. s.207 is the correct procedure.

                                      CASE:  RE TRIX (1970)

A liquidator proposed to distribute assets to creditors otherwise than in accordance with their rights.  He applied to the court under s.241 for its approval of the exercise of his statutory power of compromise.

He explained that a scheme of arrangement under s.207 would entail heavy expense which would deprive creditors of any advantage which that method might confer.  Non-ascending creditors objected.

Held:

S.207 gives to creditors a right to state their objections to the court and the court may then in its discretion decide whether to approve the scheme.  They would be unfair deprived of that opportunity under the more summary procedure of s.241.  The liquidator's application for approval was rejected.

Posted Date: 1/15/2013 4:17:11 AM | Location : United States







Related Discussions:- Statutory power - mergers and winding up, Assignment Help, Ask Question on Statutory power - mergers and winding up, Get Answer, Expert's Help, Statutory power - mergers and winding up Discussions

Write discussion on Statutory power - mergers and winding up
Your posts are moderated
Related Questions
You and a friend form a corporation (Company) together selling refurbished handbags.  Your responsibilities are to decide sales and your friend's, Patty, is to manage operations an

CASUAL VACANCIES: By S.159 (6) "The directors may fill any casual vacancy in th office of auditor, so further any there such vacancy maintaining the surviving or continuing au

Termination of an Offer - Revocation Such offer is "revoked" whether the offeror changes his thinking and withdraws it as for expressly or impliedly.  However to be valid suc

Defects in Appointment: S.181 provides that a director's acts shall be valid despite any defect that may afterwards be discovered in his appointment or qualification. This pro

Termination of Arbitral Proceeding Although the Arbitral proceedings may be terminated in any of the giving ways as; Through the final award of the arbitrator Whether

QUESTION 1 Section 39 of the Public Procurement Act provides for cancellation of a bidding process in specific circumstances. State those circumstances and the implications of

Stare Decisis and Its Application by US Courts However there is so far no case decided through the US Court of Appeal regarding the application of "stare Decisis" through US C

Stakeholders emphasised that a coordinated, whole of government approach is necessary to mitigate phoenix activity. Stakeholders also emphasised that options should recognise th

What is meaning of Relative Price Effects This final linkage occurs when there is free exchange rate between countries, which means the exchange rate is allowed to appreciate o

Order for compulsory liquidation: The Official Receiver also calls separate meetings of creditors and of contributories within one month of the order for liquidation: s.236.